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Section 179 of the Internal Revenue Code allows businesses to choose to deduct all or part of the cost of certain qualifying equipment and property in the year they place it in service. Businesses can do this instead of recovering the cost by taking depreciation deductions over a specified recovery period. There are limits, however, on the amount businesses can deduct in a tax year. Businesses may be able to claim an increased Section 179 deduction of as much as $20,000 (increasing to $35,000 after December 31, 2001) if it qualifies as Renewal Community Business. A business must have at least 35% of its workforce from the RC zone to be a RC Business.
Target Audience:
Businesses with relatively small (less than $200,000) equipment needs in any taxable year, such as labor-intensive businesses with computer costs.
Existing businesses that need to update equipment but are not otherwise purchasing equipment.
Businesses moving into a Renewal Community (RC) from another location that own the majority of their equipment but have additional new equipment needs.
HUD WorkPad--Increased 179 Deduction
PowerPoint Presentation
Additional FAQ |
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