While minimizing out-of-pocket expenses, the business can deduct the full amount of the equipment (and/or software) without paying the full cost in the year acquired. Deductions in this manner can actually allow you to save a higher amount in taxes because the total write-off can actually exceed the full year payment amount for the equipment.
• Personal Property Used In Business Operation
• Computers & Laptops
• Off-the-Shelf Software
• Office Furniture
• Large Property / Equipment Attached To Building (but not a structural component such as conveyor belts, printing press, large tools)
Qualifying equipment can also include items that are used for both personal and business operation. Section 179 deductions can only be taken if the equipment is used more than 50% of the time for business.