“If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don’t get wet you can keep.” — Will Rogers

Of all of the issues that young startups run into, planning for Tax season is one of the most pesky. Do yourself a favor and do as much background research as you possibly can to get a firm grasp of your obligations to the government before April 15th rolls around. One reason is that there are all sorts of interesting exemptions out there for those who are willing to look for them. Section 179 is just one of them.

Section 179

Section 179 allows businesses to expense up to $112,000 of certain capital assets in the year they are purchased rather than depreciating them over their useful life. If you know that you are going to make a larger infrastructure purchase, this could be an invaluable way to lower your tax obligation. There are a two things to keep in mind when thinking about this kind of exemption:

You still need to spend the money in order to write it off.
Section 179 only applies to certain capital expenditures.

Take a trip over to the IRS to learn more about the tax code.

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