Two of the biggest deductions available to a business are the Code Sec. 179 Expense Deduction and Bonus Depreciation. For 2016, the maximum amount of qualifying property that your business can expense is $500,000. That amount is reduced one-for-one to the extent qualifying property purchased exceeds $2,020,000.
New for 2016 tax returns, air conditioners and heating units now qualify for the Code Sec. 179 expense deduction.
The 50% bonus depreciation deduction is again available for 2016. Combined with the Code Sec. 179 deduction, bonus depreciation can provide your business with significant reductions in taxable income.
As always, we suggest consulting with your CPA to see how these deductions may affect you.