A Benefit for Small Businesses May Get Bigger

June 14, 2002

Internal Revenue Code section 179 contains an important benefit for small businesses—the ability to completely expense the costs of certain assets.

In general, businesses who purchase assets with a useful life of greater than one year are required to depreciate the cost of the property over a number of years.  Section 179, however, allows a business to fully expense the cost of certain qualifying property in the year it is purchased.  Thus, the business receives the full income tax benefit without having to distribute the benefit over time.

In order to comply with certain U.S. Treasury regulations, we are informing you that any U.S. federal tax advice that may be contained in this document is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. federal taxing authority or agency or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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