As business owners, most of you are familiar with the Section 179 tax rule. It is a federal rule that allows businesses to recognize immediately the expense of certain fixed assets. Taking advantage of Section 179 is very important because it can provide a great tax benefit.
Nearly every business has equipment and property that depreciates with time. Rather than being forced to deduct an asset's value over the course of several years, Section 179 allows businesses to get the entire depreciation deduction in a single year, a practice known as first-year expensing.
The IRS has lowered the limit from $500,000 in 2013 to $25,000 for the 2014 tax year. For small businesses this is still a substantial benefit as it still presents an opportunity to deduct a certain amount of equipment at tax time.