$1 Mil Sec 179 plus 100 Percent Bonus 2018

Section 179 and 168(k) Bonus Depreciation expensing allowances are applicable to many of the same types of assets and both apply to small business taxpayers. The two sections of tax law can be considered together when estimating the potential tax benefits of current year purchases of qualifying assets. Expensing under Section 179 and 168(k) Bonus Depreciation provisions allows taxpayers to deduct all or a portion of the total cost of new and used qualifying depreciable assets in the first year the asset is placed in service. Qualifying assets generally include (with exceptions) machinery and equipment used in manufacturing, mining, transportation, communications, utilities, storage facilities, off the shelf computer software used in trade or business and some non-residential real property improvements.

For 2018, the Section 179 expensing allowance is limited to $1 million. The allowance is subject to both investment and income limitations. More with SoundCPA Insights for Business.