The massive federal stimulus package passed earlier this year includes an important tax break for businesses that purchase landscaping or construction equipment. It is called the Section 179 Deduction and it could save you significant money on your 2009 taxes. The simple explanation of Section 179 is that if you purchase or lease certain types of equipment you can deduct the total price of that equipment from any profit your business may have made this year. It is a dollar for dollar deduction. If you purchase or lease equipment before the end of 2009 in the amount of $30,000, you can take a $30,000 expense which will reduce your tax bill by as much as $10,500. Of course there are some conditions and limitations but they are not that complicated and there are some great resources to help you figure out if you qualify. As always the best advice comes from your accountant but you have to purchase the equipment before the end of December. Virtually any piece of equipment we sell can qualify you for the tax break. To learn more here is a great section on the Bobcat web site that explains Section 179 in detail.

Bobcat Section 179 Information

Information can also be found at the IRS web site here