Want to lower the true cost of ownership on your business equipment? Here’s how:

Business Equipment

Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction. Under Section 179, businesses that spend less than $2 million a year on qualified equipment, may write-off up to $500.000 in 2015. The rules are designed for small companies, so the $500,000 deduction phases out when a business purchases more than $2 million in one year. (Companies cannot write off more than their taxable income).