Here’s the good news about business taxation: In general, you can deduct the costs of running your business in the same year that you pay them.Â Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, theÂ full purchase priceÂ of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken. This deductionÂ is designed to allow small businesses to deduct the full cost of assets in the year they are purchased. This is also known as “expensing,” because you get to deduct the cost of new assets just as you do current expenses.
For more information on small business taxes, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.