Great News for Small Business Owners, Too
Huge Increase in Annual Section 179 Allowance. If you own a small business, the very best part of the new law from your perspective may be the huge increase in the Section 179 first-year depreciation break. Under the much-loved Section 179 rule, you can generally instantly deduct 100% of the cost of most new and used personal property (non-real estate) assets in the year you place them in service. Until the new law, however, this year’s Section 179 deduction was limited to $25,000. That was then. You can now deduct up to $100,000 for tax years beginning in 2003, 2004 and 2005 (subject to a taxable income limitation and another limitation if you add over $400,000 of qualifying assets during the same tax year). continue reading..
