Cleveland, OH -- (ReleaseWire) -- 11/17/2011 -- Federal Equipment Company (http://www.fedequip.com), a global provider of used industrial equipment, and asset management services for the pharmaceutical, chemical, and plastics process industries, recently addressed the capital investment cost savings opportunity defined by Section 179 of the Internal Revenue Tax Code on their website.
As stated on the Internal Revenue Website (www.irs.gov),
“You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. This is the Section 179 deduction. You can elect the Section 179 deduction instead of recovering the cost by taking depreciation deductions.”
“The Section 179 deduction allows a business to deduct 100% of an eligible equipment purchase in the year the equipment is placed into service.” according to Matt Hicks, COO of Federal Equipment Company.
Additionally, to apply for the Section 179 deduction, equipment purchased must meet the following criteria; be eligible for the deduction, be acquired for business use, be acquired by purchase and not defined as “property that does not qualify.” It also must be placed into service during the calendar year.
According to the 179 deduction, eligible purchases include tangible property such as;
- Machinery and equipment “used as an integral part of manufacturing, production, or extraction, or of furnishing transportation, communications, electricity, gas, water or sewage disposal services.”
- Property acquired for business use used in your trade or business and not purchased for the production of income or investment.
- Property must be acquired by purchase, as opposed to gift, inheritance, or from a relative.
Full details regarding equipment qualifications can be found at
According to Hicks, “If your business has not taken advantage of the Section 179 opportunity, purchasing used process equipment may allow you to upgrade or add to your capital assets in 2011. Used processing equipment is generally available immediately, avoids long lead times, and places your equipment into service prior to the year-end, allowing you to take advantage of this cost-saving opportunity.”
Disclaimer: Federal Equipment Company buys and sells used process and packaging equipment for the pharmaceutical, chemical, plastics, and related process industries. Federal Equipment Company and its directors, officers, employees and affiliates are not in the business of providing accounting, finance, tax, or legal advice. Nothing in this writing is intended to be legal or tax advice of any kind. This writing is intended to be read for information purposes only. Please consult with your accountant and/or attorney if you have any questions.