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Why is section 179 expensing election more valuable to a small business than to a large...

Why is section 179 expensing election more valuable to a small business than to a large business?

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Answer #1

Solution:-

Why is section 179 expensing election more valuable to a small business than to a large business:-

The annual dollar amount that can be deducted under Section 179 is reduced dollar-for-dollar by any excess of the total cost of depreciable personalty over a threshold amount ($560,000 in 2011). Consequently, large firms that routinely purchase more than the threshold amount of depreciable personalty each year derive a reduced or no benefit from this election.

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