Learn How to Pay Half For a New Machine
"American Recovery and Reinvestment Act" (ARRA), enacted in February 2009, extended the bonus depreciation (http://www.irs.gov/businesses/small/article/0,,id=213666,00.html) and increased the
section 179 deduction. For many businesses, these two provisions are only available this year and, as a result, they only have a few months to take action and save on their taxes.Here is a quick summary of these provisions:

Many small businesses that invest in new property and equipment will be able to write off most or all of these purchases on their 2009 returns. The new law extends through 2009 the special 50 percent
depreciation allowance, also known as bonus depreciation. Normally, businesses recover these capital
investments through annual depreciation deductions spread over several years.

The section 179 deduction (http://www.section179.org/) enables small businesses to deduct
IMMEDIATELY up to $250,000 of the cost of machinery, equipment, vehicles, furniture and other
qualifying property placed in service during 2009. As an example: A purchase and delivery of a
TECHNO CNC Router that costs $50,000.00 and delivered in December 2009, will in effect cost
NET $25,000.00 taking into effect the 50% bonus depreciation. The deduction is taken immediately. A
further example is this 50% deduction can also apply to various software packages that are part of the
router purchase.

To qualify for the section 179 deduction, your property must be, tangible personal property. Tangible personal property is any tangible property that is not real property. It includes the following property:

Machinery and Equipment Software

To qualify for the section 179 deduction, your property must have
been acquired for use in your trade or business.