Section 179 Property

Beginning in 2001, the limit on Section 179 property has been raised to $24,000 from $20,000 for the tax year of 2000. Personal property used in the active conduct of a trade or business can use this election to totally expense the property in the year purchased or placed into service instead of depreciating it over the life of the asset.

Many real estate agents use this tax benefit to purchase needed equipment while enjoying an accelerated deduction. You can make the purchase in the last week of the year and still write it off as if you had purchased it on January 1st.

So if Santa didn't bring you exactly what you wanted, you can buy it yourself, increase your productivity, and get a tax deduction. It's like getting three gifts in one. Some of the more common purchases include computers, printers, digital cameras, Personal Digital Assistants like Palm or HandSpring, cellular phones, and office furniture.