Code Section 179 provides a special tax break, called "elective expensing" which permits you to write off (deduct) immediately (in the year of purchase) the cost of a substantial amount of equipment, furniture and other tangible movable personal property. The amount you can deduct in one year was increased in 2008 from $128,000 to a quarter million dollars, $250,000. This high limit will remain in 2009, but watch for new developments in the law, especially after 2009. This valuable tax break is phased out as your business purchases more than $800,000 of qualifying equipment in one year.
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