Section 179

Max out on Section 179. Under Section 179 of the tax code, a business can currently deduct, or “expense,” the cost of qualified new or used property placed in service during the year, up to a stated limit. The Protecting Americans for Tax Hikes (PATH) Act permanently preserved a maximum of $500.000 allowance, subject to inflation indexing. But the deduction is limited to your taxable business income and reduced dollar-for-dollar for acquisitions above a $2 million threshold, also indexed for inflation.