● Section 179. Under code Section 179, you can expense many types of otherwise depreciable property used in your business. Both new and used assets qualify for Section 179.
For 2015, the maximum amount you can expense is $500,000 of
the cost of qualifying property you began to use during the year. The $500,000 is
reduced when the cost of the property you purchased during the year exceeds
$2,000,000. Your deduction may also be limited by the amount of your business
income.
Planning tip: The
Section 179 amounts are now permanent. Beginning in 2016, both will be adjusted
annually for inflation.
● Bonus
depreciation. In addition to Section 179, you can benefit from the 50% bonus
depreciation deduction for tangible personal property that you purchased and
placed in service during 2015. Bonus depreciation is generally available for
new assets that have a useful life of 20 years or less.
