If you’ve been considering a purchase of capital equipment or software, End of Year 2011 is the time to make your move.  Known as the Section 179 deduction, most new and used equipment, including software, qualify for an immediate tax deduction.  As opposed to taking smaller write offs on the equipment over several years.  The maximum deduction has been raised to $500,000 for the remainder of the year.

From the IRS website

You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions.

Basically, purchasing new equipment between now and the end of 2011 will allow you to completely write off the purchase in April on your 2011 return.  (Up to $500,000)

This is an excellent incentive for small business owners to purchase the capital equipment they need now!  This deduction can also be used in conjunction with a lease.  Contact Solid Technologies, Inc. for details regarding leasing.