We have had an exciting time here in the leasing industry this year. There is a lot of excitement about potential growth of the economy in 2012. One thing that we wanted to make sure that everyone knew about for 2011 was the Tax Relief Act of 2010 which expires December 31, 2011. Under the Section 179 Deduction provision you are allowed to expense up to $500,000 as a deduction as opposed to the $250,000 normally allowed. This deduction is allowed as long as you do not have purchases expensed over $2,000,000. Both new and used equipment are eligible for this deduction.
There is also a Bonus Depreciation incentive available until the end of 2011. This allows you to write off 100% for capital expenditures and depreciable property. This incentive only applies to new equipment. In order to qualify for 100% depreciation, the equipment must be delivered by December 31, 2011.
Have a question on how to maximize your savings using this provision? Go to the Section 179 website at