Tax & Business Services |
|
Increased Section 179 Expense Amount for 2005 The Section 179 tax deduction helps larger businesses deduct assets faster. Smaller businesses derive little or no benefit from the tax deduction, because their annual asset acquisitions generally are not as large. Before making a decision to write off assets, be sure to compare how a faster write-off will affect your taxes in future years. Also consider the effect of lowering your social security contributions on future social security benefits. For 2005, up to $108,000 may be expensed. This amount is phased out if more than $430,000 of qualified property is placed in service in one year. Both amounts are indexed for inflation. It also allows the election to be made on an original or amended return and can be revoked without permission. |