Written by Marc R Barnes EA
September 25, 2009
Small businesses can write off the full cost of some assets in the year they buy them, rather than capitalizing them and deducting their cost over a number of years.

Section 179 of the Internal Revenue Code allows you to deduct up to $250,000 of the cost of new equipment or other assets in 2009. This is subject to a phase-out if you place more than $800,000 of equipment in service in 2009. Some assets don't qualify for this Section 179 deduction, including real estate, inventory bought for resale, and property bought from a close relative.