The Section 179 Deduction Might Save You Some Money

[Official disclaimer] Keep in mind as you read this that I'm not a tax adviser.  I've never even played one on TV.  However, I have stayed at the Holiday Inn Express.

Aparently Section 179 of the IRS code isn't widely known or understood.  In fact, it's fairly simple and can save an entrepreneur some money.  Here's the deal.  It used to be that if you bought a piece of equipment, you had to amortize the cost over several years.

Now, under Section 179, you can deduct the full cost in the year that the purchase is made.  According to Section179.org, the provision in the tax code, sometimes called the "SUV Loophle" or the "Hummer deduction" is intended to encourage small business owners to invest in their businesses. 

The site gives an example of the way 179 can be used to save money.  There are some limits, for example the maximum amount of the purchase is $800,00 which makes it a benefit for smaller companies and the web site offers a list of qualifying equipment.

If you've been thinking about buying a new truck or some other expensive piece of equipment, you might want to take a look at Section 179 and consider making the purchase before the end of the year.

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