Section 179 Deduction

Section 179 is a part of the Internal Revenue Code allowing the small business entrepreneur the opportunity to reduce their overall tax obligation in the current calendar tax year by taking a one-time special deduction for the cost of certain equipment.

Various Sets of Accounting Books

Accounting Books

Accounting’s primary purpose is to measure economic activity. There are several different methods to determine the economic value generated in your business each year. In accounting this is referred to as sets of books. There are four basic sets of accounting books. Each has a different purpose and end goal.

Accelerated Depreciation – An Explanation

Accelerated Depreciation

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is costed out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses the cost at higher values during the earlier accounting periods and at a lower amount towards the last half of the asset’s life expectancy.

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