Small businesses got good news when the Hiring Incentives to Restore Employment, or HIRE, Act became law in March.
Among its many provisions is a continuation of the expanded expensing tax break, often referred to as the Section 179 deduction.
Rather than depreciating some capital equipment over several years, parceling out the tax benefits of that expense, small business owners can now write off up to $250,000 in qualifying business investments this year. This is double the previous expensing deduction of $125,000.
This business tax break applies to a wide variety of equipment that businesses need on an ongoing basis, such as machinery, computers, software, office furniture, vehicles and other tangible goods.
Even better, very small businesses can benefit. If you're a sole proprietor and need a new computer system and other office equipment to do your job, you can deduct those costs in full on your Schedule C.