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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.

"Tax software is no substitute for tax knowledge."

Any views expressed herein are based on our best information. The content of this web site was written as general information without specific individual information and thus may not apply in all situations. This material was not written, and cannot be used by the taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

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Janelle Ogg, EA
Richard Ogg, EA