First-year Expensing

Description and Definition of First-year Expensing

Also known as the Section 179 deduction, expensing lets you treat up to $19,000 of expenditures that normally would be depreciated over a number of years as current business expenses that you can deduct immediately. Larger deductions are allowed for qualifying businesses in an enterprise zone. The deduction is not available for real estate. The deduction gradually increases to $25,000 in 2003. You cannot use the Section 179 deduction to the extent that it would cause you to report a loss from your business.

Resources

See Also

Further Reading

• First-year Expensing in the West's Tax Law Dictionary
• First-year Expensing in “A Dictionary of Taxation”