Learn how Section 179 Can Increase Your Bottom Line in 2010
Join Motion Media and Jacob Lager of Zuber & Taillieu for a free webinar explaining the details of Section 179, and how you can best use this tax deduction to your advantage. This is not a complicated tax, and it is much easier than you might think to deduct your software & even other purchases as well.
Jacob will go over:
- Section 179 overview
- What you can write off
- How it works
- How financing software this year can actually make you money in 2010
- What other purchase you can deduct with Section 179
- Q&A – Get all of your questions answered.
Who Should Attend: Anyone who has purchased any software in 2010, or is planning on purchasing before year’s end.
When: Thursday, December 9th – 1pm-2pm
What is the Section 179 Deduction??
Most people think the Section 179 deduction is some arcane or complicated tax code. It really isn’t, as the following will show you.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves. It is sometimes referred to as the “SUV Tax Loophole” or the “Hummer Deduction” because many businesses have used this tax code to purchase qualifying vehicles (like SUV’s and Hummers.)
Essentially, Section 179 works like this:
When your business buys certain pieces of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a vehicle, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example.)
Now, while it’s true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting. That’s the whole purpose behind Section 179… to motivate the American economy (and your business) to move in a positive direction. For most small businesses (adding total equipment, software, and vehicles totaling less than $500,000 in 2010), the entire cost can be written-off on the 2010 tax return.
For businesses adding even more than $500,000, the write-offs are still substantial. See the following graphic for an example of the savings that is currently available to you after the ‘Small Business Jobs and Credit Act of 2010′ passed in September 2010.
About Jacob Lager
Jacob Lager chairs Zuber & Taillieu LLP’s tax, trusts, and estates department. Mr. Lager’s practice includes transactional tax matters, trust and estate planning, and tax and probate litigation.
Mr. Lager regularly counsels clients on tax issues pertaining to corporate mergers, asset acquisitions, spin-offs, and debt exchanges. Mr. Lager’s experience includes conception and implementation of both domestic and cross-border tax solutions involving special status entities, such as S corporations, disregarded limited liability companies, partnerships, REITS, and tax-exempt charitable organizations. He often counsels corporate clients pertaining to public and private offerings, stock option plans, and various forms of deferred executive compensation.
Mr. Lager also provides estate planning services to high net-worth individuals. His practice involves handling basic and complex issues related to estate taxation, generation-skipping taxation, fiduciary income tax and post-mortem tax planning. Mr. Lager has experience settling basic and complex estates, both through probate proceedings and private trust administration. His special expertise in meeting his clients’ unique generational needs ranges from drafting living trusts to more involved GRATs, QPRTs, family limited partnerships and LLCs, ILITs, charitable trusts, and other manners of deferred giving.
Mr. Lager also has extensive experience in tax and probate litigation, having advocated for clients at all levels of dispute resolution, from state and federal administrative hearings, to local Probate courts, to the Ninth Circuit Court of Appeals.
Prior to joining Zuber & Taillieu LLP, Mr. Lager practiced in the tax department of Gibson, Dunn & Crutcher LLP.