The American Recovery and Reinvestment Act of 2009 (Recovery Act) restored the higher Section 179 equipment expensing limit, allowing small businesses to write off as much as $250,000 of new or used equipment purchased this year.  In addition, brand new equipment, software, and leasehold improvements can qualify for 50% first-year bonus depreciation deduction if purchased and placed in service before the end of 2009.

The Recovery Act also helps businesses invest in their most important asset – their employees.  Employers can provide employees with a tax-free fringe benefit of up to $230 per month for qualified mass transit and van pooling expenses.

Note:  Do not apply this general information to your specific situation without additional details.  Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that cannot be summarized easily.  For details and guidance in applying the tax rules to your individual circumstances, contact your individual tax planning professional.