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What a Deal! Section 179 Tax Deduction Save up to 40% on up to $500,000 in business equipment and software expenses by using the IRS Section 179 Tax Deduction. Here's how it works. Businesses can directly deduct 100% of business equipment expenses up to $500,000 each year. You can lease or buy items, but they must be new, not used. If you didn't purchase this equipment and paid taxes on your profits instead, you would have paid up to 40% of this money in taxes. So, why not buy a car, truck, computers, software or other equipment instead of paying taxes?

Sole proprietors, partnerships, and LLCs have the most to gain - because they can reduce both their taxes and their self-employment tax. Corporations can only reduce their corporate taxes. So with self-employment tax, you can be saving up to 40% on these items.

What to do? If you haven't paid $500,000 for equipment this year, just lease or purchase the item, and notify your tax preparer that you want to use this as a Section 179 tax expense. If you are doing tax forms yourself, there are lines on Schedule E for Section 179 expenses.

You WON'T save money if you don't have enough profit to cover the Section 179 expense - because you won't be paying taxes. The purpose of Section 179 is to reduce the taxes you would have paid by purchasing equipment.

Want to know a bit more? Visit www.section179.org