What is the Section 179 expense?

Q: What is the Section 179 expense?

A: The deduction contained in the Internal Revenue Code Section 179 allows for expanded deduction of equipment purchased for the year of 2008. During the year 2008, the maximum allowable deduction is $250,000. Bonus depreciation has also been reintroduced. To qualify for bonus depreciation, the equipment must be purchased brand new and be used within a trade or business.

If I purchase and use a hybrid vehicle for business purposes in my business, am I still eligible to use Section 179 accelerated expenses?

Q: If I purchase and use a hybrid vehicle for business purposes in my business, am I still eligible to use Section 179 accelerated expenses?

A: Yes, even though a hybrid car purchase can qualify for a credit, Section 179 expenses, bonus depreciation, and ordinary depreciation can still be used by the buyer.