2015 Section 179 Deduction

The total amount you can elect to deduct under section 179 for most property placed in service in 2015 is 25 000.

2015 section 179 deduction. This means businesses can deduct the full cost of equipment from their 2015 taxes up to 500 000 with a total equipment purchased for the year threshold of 2 000 000. On december 21 2015 the u s. In fact as of jan 1 2015 section 179 fell back to 25 000.

House and senate approved a bill to return the section 179 deduction to 2014 levels permanently raising the deduction limit to 500 000. This means as of today section 179 for 2015 has a maximum deduction of 25 000 and a 200 000 cap on equipment purchased. See the instructions for part i.

Yes this is a robust deduction and you should take advantage of it for your 2015 taxes. Essentially section 179 of the irs tax code allows businesses to deduct the full purchase price of qualifying equipment and or software purchased or financed during the tax year. For tax years beginning in 2015 the maximum section 179 expense deduction is 500 000 535 000 for enterprise zone property.

The irs section 179 expense deduction allows a business owner to recover all or part of the cost of certain qualifying property. If you acquire and place in service more than one item of qualifying property during the year you can allocate the section 179 expense deduction among the items in any way as long as the total deduction is not more than 25 000. The new higher deduction limit is retroactive to qualifying purchases made since january 1 2015.

The section 179 deduction applies to tangible personal property such as machinery and equipment purchased for use in a trade or business and if the taxpayer elects qualified real property. The section 179 tax deduction limit for 2015 is 25k the 25k limit includes most new and used equipment and also includes software your section 179 deduction cannot exceed the amount of your taxable net business income for 2015 if you spend more than 200 000 on qualifying property your section 179 deduction will be limited. That means that if you buy or lease a piece of qualifying equipment you can deduct the full purchase price from your gross income.

This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds 2 million. As it presently stands for the 2015 tax year section 179 has a limit of 25 000 with a phase out beginning at 200 000 and no bonus depreciation is allowed unless congress takes action to change this.