Section 179 Deduction
This refers to a section of the Internal Revenue Code that permits taxpayers to expense (write off in one year) up to $125,000 (adjusted for inflation annually) of business equipment expenditures that would normally have to be depreciated over their useful lives. The $125,000 allowance is gradually reduced for businesses that place into service more than $500,000 (adjusted for inflation annually) of business equipment during the year. However, for 2008 and 2009, as part of the Economic Stimulus legislation, the limit was raised to $250,000 and the phase-out threshold raised to $800,000.
