Expanded Section 179 Extended through 2009
On May 17, 2006 President Bush signed into law the Tax Increase Prevention
and Reconciliation Act of 2005. (The bill was initiated in Congress in 2005,
thus the year.) The bill includes many provisions, and here we look at one
of the nicer provisions.
Section 179 of the tax code allows business to effectively "expense" certain
capital expenditures subjuct to limitations. Generally this helps only small
to medium size businesses.
Currently the maximum amount that can be "expensed" is just over $100,000
adjusted for inflation.
But after 2007 all the limits return to $25,000.
One of the provisions of TIPRA is to extend the current provisions for two
additional years - through 2009.