Wouldn't it be nice if you could expense a fixed asset at one time?

That's exactly what a Section 179 deduction lets you do.

Back in the day, a Section 179 deduction was limited to $25,000. But changes in the tax law have increased how much you can write off. Lawmakers increased the Section 179 deduction amount to stimulate the economy

For purchases made in 2008, your small business can expense $250,000 in capital expenditures. As we move into 2009 and beyond, those numbers are increasing, due to some inflation indexing.

You have to opt-in to take a Section 179 deduction. It isn't automatic. You make the election on an item-by-item basis using Form 4562.

Unfortunately, you cannot apply the Section 179 deduction to purchases you've made in prior years. The Section 179 election has to be made in the tax year the property is first placed in service.

If you don't use your entire Section 179 deduction this year, you can't rollover the excess to next year. It's a use-it-or-lose-it small business tax deduction.

If you do hit the maximum Section 179 deduction amount, any overage for a purchase must be depreciated. In addition, you cannot deduct more than your income - in other words, you cannot use Section 179 to create a taxable loss.