Only Two Months left to take advantage of the 179 Deduction!
How can Section 179 apply to your staffing business? President Obama extended the 179 Deduction through 2009 via the American Recovery and Reinvestment Act (ARRA). There is no guarantee it will be renewed in 2010 or beyond, so if you are considering purchasing staffing software for your business, this would be the time!
According to http://www.section179.org/ "the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the US Government to encourage businesses to buy equipment and invest in themselves."
The definition of off the shelf software is any software available to the general public on similar terms, which is subject to a nonexclusive license, and has not been substantially modified. Based on this definition, Avionte Software would qualify for the 179 Deduction. Software will not be considered to have been substantially modified if the cost of all modifications does not exceed the greater of 25% of the price of the unmodified version or $2,000.
Keep in mind that all taxpayers may not qualify due to other reasons, such as the purchase of other Section 179 assets or if they have a net loss. You will want to check with your accounting group regarding your own individual situation.