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News - January 2005

Extension of Section 179 Deduction

In mid-October of last year, Congress addressed a series of long-awaited tax reform provisions, passing the American Job Creation Act of 2004. 

Sec. 179 is an important privilege, allowing small businesses to claim an immediate expense for the first $100,000 of equipment purchases. For many years, this allowance was in the $20,000 range, but after 9-11-01, Congress raised it to the $100,000 level for tax years beginning in 2003, 2004, and 2005. Rather than have this amount revert to its scheduled $25,000 limit in 2006, Congress has now extended the enhanced amount for two additional years through 2007.

Click this link to learn more about these important tax changes.

Source:  BKR Dupuis & Ryden (www.bkrdupuisryden.com)