2011 Section 179
(Archived Page From 2011)

Section 179 Took Off in 2011

2011 was an excellent year for Section 179. That's because legislation passed in late 2010 increased Section 179 and the Bonus Depreciation substantially. The total deduction was doubled in size, to $500,000, and the total limit of equipment purchased was raised to $2,000,000 (two million dollars!) These increases helped businesses buy new (and new to them) equipment and get a substantial tax break.

Below is a 2011 Section 179 Calculator that reflects the 2011 limits, and can let you know how much tax Section 179 can save you for 2011.

FREE 2011 Tax Incentive Report

Section 179 provides your business with substantial, immediate tax relief in 2011.

But did you know that combined with 'Section 179 Qualified Financing', it literally deposits thousands of dollars in your bank account?

This is it – this is the only government help that your business is going to get!

To see how much you could save in 2011, we've provided the following 2011 Section 179 Calculator. This calculator is fully updated with the 2011 limits, and can give you a picture of just how much Section 179 could save you the year 2011. Go ahead and check it out.

2011 Section179 Tax Deduction Calculator

Do the numbers look good? They can look even better with Section 179 equipment financing, no matter what year it is.

Besides the tax break, your bottom line will look even better with the right equipment financing. That's because the easy-approval, great rate financing Crest Capital offers allows you to take full advantage of Section 179, while still keeping your cash and making the balance sheet look great.

And here's the best part – Section 179, combined with equipment financing, is often a profitable endeavor. That's because, in most cases, you will save MORE with the deduction than you pay out in finance payments. These dollars then become bottom line dollars (PLUS, you get the new equipment).

Contact Crest Capital for a no-obligation Equipment Lease or Equipment Financing Consultation.

More on Tax Code Section 179 (2011 changes detailed)

Section 179 is the provision of the US Tax Code that allows businesses to deduct the full purchase price of equipment bought (and put into use) during the 2011 calendar year. Equipment can include most machinery, many vehicles, computers and related equipment, software, office furniture and fixtures, signage, and other types of tangible equipment.

There are a few important differences for 2011 that you should be aware of:

Then (2008-2010): Several years prior, Section 179 was increased by the Economic Stimulus Act of 2008. The deduction limits were raised to $250,000, and the act also installed a "bonus" first year depreciation of 50%. These limits were kept with only small adjustments until late 2010. But in late 2010, H.R. 4853, and H.R. 5297 (the Tax Relief Act and the Jobs Act, respectively) were passed, enhancing Section 179.

Now (2011): These two new acts in late 2010 increased Section 179 for 2011, with the deduction limit doubling to $500,000, and the equipment purchase cap increasing to $2,000,000 (once that cap is reached, the deduction reduces on a dollar for dollar basis.). PLUS, the Bonus Depreciation (for expenditures that exceed the Section 179 cap) was raised to 100%. Lastly, small businesses that would not be profitable in 2011 could use the 100% Bonus Depreciation (on new equipment only), and carry-forward the loss to future profitable years.

What this means for you:

It means Section 179 should definitely be a part of your 2011 strategy. If you need equipment or software and have been putting off buying it due to the economy, NOW is the time to strike. And we'll make it simple for you.

Just contact us here, and we'll answer all of your Equipment Financing and Section 179 questions.

Limits and Qualifying Property in 2011

Section 179 has a few important limits. The total cost of the equipment you are deducting cannot exceed the total amount of the taxable income you are reporting (so no large equipment deductions while also showing no income.) State tax laws can differ as well, of course.

In terms of eligible business equipment, most of the common tangible items that are necessary to run a business and produce goods will qualify for the Section 179 deduction, including:

  • Tangible property (production machines, office furniture, computers, office machines, etc).
  • Most business Vehicles (i.e. non-personal use)
  • Other business vehicles that have a gross vehicle weight (GVW) of 6,000 pounds or greater (including some SUV's) qualify for a $25,000 maximum deduction.
  • Software that is not 100% custom coded. This generally means off-the-shelf-software. Also websites do not qualify.
  • Certain storage facilities, and many single-purpose agricultural/horticultural structures (disclaimer: buildings or offices do not qualify – only specific-needs, portable buildings that are not fixed to the ground).
  • Also, in most cases, used / pre-owned equipment will qualify (the general rule is as long as it is new to you).

If you have any questions on whether something you wish to finance qualifies, you can reference IRS Publication 946. Again, also check your state laws.

Section 179 is better than ever in 2011, and can make THIS YEAR a much better one financially for your company. Save money, and get new equipment as well – a win/win.
Contact Crest Capital for a free consultation.

The Section 179 election, which is made on IRS Form 4562, is for the calendar tax year the property was both purchased and placed into service (Jan 01 to Dec 31). For further details regarding Section 179, contact your local tax advisor, or visit www.irs.gov.

Need old Section 179 Calculators? Here they are:

2010 Section 179 Calculator
2009 Section 179 Calculator
2008 Section 179 Calculator
2007 Section 179 Calculator

For more information about equipment financing programs, business planning tools, and industry resources, Contact Crest Capital.