Huge Opportunity for Companies - Section 179 Accelerated Depreciation

In an effort to stimulate the economy, President Obama and our Congress increased the 2011 Section 179 accelerated depreciation deduction allowance. Businesses who acquire equipment including machinery, computers, and other tangible goods, prefer a substantial accelerated deduction in a single tax year in order to minimize tax liability. This accelerated deduction is known by its section in the tax code: a Section 179 deduction. The 2011 law increases the amount of qualified
property that a business can expense under Section 179 to $500,000. This incentive is for equipment placed in service before January 1, 2012. Vendors of capital equipment should present this information to their prospects early in the sales cycle as this benefit can really move the needle. One caveat, this benefit only has an impact when dealing with companies that have taxable income/profit. Deductions are useless if there is nothing to deduct.