The new permanent Section 179 expensing limit allows a
business to take a current year deduction of the full purchase
amount up to $500,000 for assets under $2 Million.
On Friday, December 18, President Obama Signed the $1.8 Spending and Tax Bill into Law. Earlier on Friday, the Senate gave final congressional approval to the bill, which includes nearly $700 billion in tax breaks. The legislation extends more than 50 expiring tax cuts, with more than 20 becoming permanent, including increasing the maximum amount for small business expensing under IRS SECTION 179 to $500,000. This would be reduced if the cost of SECTION 179 property placed in service exceeds $2 Million.