Hidden in the back of the big omnibus bill that passed just days before Congress broke for the holidays was an important new change in the tax laws. It gives a boost to small and mid-sized businesses, and might help stimulate the economy.
I know — taxes and depreciation schedules put you into a coma. Before your eyes glaze over, follow what this means. Before, when a business bought or leased a piece of equipment, some of the costs were written off each year through depreciation. This offered businesses some incentive to invest in equipment, but it made their accounting and taxes more complex than necessary.
The change to Section 179 eliminates that depreciation schedule. Small companies can simply purchase as much as $500,000 in business-related equipment and write it off that year. It’s a much simpler approach to making and accounting for capital expenditures.
Continues at A Break for Small Business