Capital Equipment And Section 179: Over Time or All At Once?
Posted by admin on Nov 18, 2007
You are upgrading the computer system in your business and to do so you need to invest in a variety of new computers. You will use them solely for your business and therefore they qualify as deductible expenses. But, do you deduct them all at one time or do you need to consider it capital equipment and therefore deduct over several years?
Section 170 now allows most tangible personal property that you purchase for your business to be deducted all at one time, in the year that you purchase. Capital equipment is considered equipment that has a life span of over a year, but computer equipment, office furniture and other equipment is an exception.
There are limits as to how much this equipment can cost, defined on a per year basis. You cannot use Section 179 for land, intangible assets, air conditioning and heating units or buildings and inventory.