Small businesses can write off the full cost of some assets in the year they buy them, rather than capitalizing them and deducting their cost over a number of years.
Section 179 of the Internal Revenue Code allows you to deduct up to $250,000 of the cost of new equipment or other assets in 2009. This is subject to a phase-out if you place more than $800,000 of equipment in service in 2009. Some assets don't qualify for this Section 179 deduction, including real estate, inventory bought for resale, and property bought from a close relative.
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