NASE Blogs

Section 179

Sep 21, 2010
Q. I thought that the Section 179 limit was just $134,000 for this year. But I’ve heard it was increased. What’s the limit for 2010?

A. The cap on the Section 179 deduction was scheduled to be reduced from $250,000 to $134,000 for 2010.

But, the Hiring Incentives to Restore Employment (HIRE) Act keeps the maximum Section 179 deduction at $250,000, which is the same as 2009.

This deduction is for qualifying depreciable business assets placed in service in tax years starting in 2010. The result is that micro-businesses can deduct significantly larger amounts of the cost of qualifying property instead of depreciating that property over several years.

Without further action from Congress, the Section 179 limit will drop dramatically in 2011 to just $25,000. Let your Congressional representative know how important this deduction is to your business by visiting and clicking the Advocacy tab.