Q. I hope you can help me. I want to make sure I’m clear on this. We purchased some used equipment from one of our suppliers. I know there is something called “Expensing Election” which allows you to expense equipment when it is purchased. Does used equipment qualify?
A. Good News! The expensing election is also called Section 179 depreciation. In 2011you can take up to $500,000 of equipment purchases either new or used and qualify. There are a couple of restrictions. The amount of fast depreciation that you can take is limited to the amount of your income from that business. In addition, if you happen to purchase $800,000 of equipment, the expensing election phases out.
Let me know if you have any other questions.
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