Are you aware that section 179 depreciation rules will change in 2012?
For 2011, businesses are permitted under the Small Business Jobs Act of 2010 to expense up to $500,000 of qualifying Section 179 property, and the amount that may be expensed is reduced only if the cost of the Section 179 property exceeds $2 million. Under the 2010 Tax Relief Act, a $125,000 dollar limit (indexed for inflation) and a phase out beginning at $500,000 (indexed for inflation) is in effect for 2012. After 2012, the limit reverts to $25,000, with a phase out beginning at $200,000.
Now is the time to make machinery purchases to take advantage of the section 179 deductions for 2011 rates before they change. Please consult with a CPA for more details.