Section 179 Expense Deduction

Description and Definition of Section 179 Expense Deduction

Also known as the First Year Expensing, Section 179, 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, up to $37,500, 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

• Section 179 Expense Deduction in the West's Tax Law Dictionary
• Section 179 Expense Deduction in “A Dictionary of Taxation”