What is Section 179, and how does it benefit businesses? Section 179 is a tax incentive that allows small businesses to write off the entire purchase price of qualifying equipment in the year it was purchased.
If a business bought a piece of equipment before Section 179, they would have had to write it off over its normal recovery period. For example, if a business purchased $100,000 in equipment that was depreciable over five years, they would only be allowed to write off $20,000 of the price during the year it was purchased, then $20,000 per year for four years after that. This made it difficult for some businesses to purchase the equipment they needed. Now, under Section 179, that same business is able to write off the entire $100,000 the same year the equipment was purchased
What Is Section 179, and How Can It Benefit You? | Millionacres