A tax break called “Section 179″ that lets small businesses treat qualifying property purchases as expenses and deduct them from their taxable income.

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves.  “be sure to consult your tax adviser”

Tax Section 179

What is the Section 179 Deduction?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves.

How Does Section 179 Work?

When your business buys certain pieces of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a equipment, it gets to write off at $10,000 a year for five years.

Now, while it’s true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting. This is the purpose behind Section 179… to motivate the American economy (and your business) to move in a positive direction. For most small businesses adding total equipment, software etc totaling less than $500,000 in 2010, the entire cost can be written-off on the 2010 tax return.

Who Qualifies for Section 179?

All businesses that purchase or finance less than $2,000,000 in business equipment during tax year 2010 should qualify for the Section 179 Deduction.

Electing the Section 179 Deduction | Form 4562

If you are a small or medium-sized business owner who has purchased or leased equipment in 2010 and placed it into service during the calendar year, then you need to elect to take the Section 179 Deduction to ensure that your business captures the available tax savings.

Leasing and Section 179

Did you know that your company can lease equipment and still take full advantage of the Section 179 deduction? In fact, leasing equipment and/or software with the Section 179 deduction in mind is a preferred financial strategy for many businesses, as it can significantly help with not only cash flow, but with profits as well.

Non-Tax | Capital Lease

The main benefit of a non-tax capital lease is that you can still take full advantage of the Section 179 Deduction, yet make smaller payments.

With a non-tax capital lease you can acquire and write off up to $500,000 worth of equipment this year, without actually spending $500,000 this year. A small business that is managing cash flow can leverage a non-tax capital lease and still take the Section 179 Deduction.

Examples of non-tax capital leases include a ‘$1 Buyout Lease’ and a ’10% Purchase Upon Termination (PUT) Lease’. In many cases, the amount you save in taxes will be MORE than the total of your first year’s payments.

Equipment Financing

You may also obtain an equipment loan using an Equipment Finance Agreement (EFA) and still take the Section 179 Deduction.

Advantages of Leasing and Financing

The obvious advantage to leasing or financing equipment and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction.

Lake Mary, FL – September 7, 2010 – Test Equipment Connection announced today that it has entered into a Distribution Agreement to sell new Triveni Digital systems that provide for the management and distribution of data and metadata in digital television streams and other broadcast and multicast media.

“Triveni Digital products are designed to make sure DTV signals are carried and received correctly,” said President and COO Mike Novello. “From GuideBuilder’s market-share-leading PSIP technology, to StreamBridge’s accurate data translation, to StreamScope‘s powerful analytical capabilities, they have a broad platform of solutions.  Triveni Digital products are flexible and support any digital broadcast medium including satellite, digital cable, digital terrestrial TV, and IP multicast.”

About Triveni Digital, Inc.

Triveni Digital, Inc., a subsidiary of LG Electronics, develops systems that provide for the management and distribution of data and metadata in digital television streams. Triveni Digital’s products for DVB SI, ATSC PSIP, data broadcasting, stream analysis, and monitoring are renowned for their ease of use and innovative features. Working with leading industry partners, Triveni Digital employs an open and standards-compliant approach to the digital television market.

About Test Equipment Connection Corporation

Test Equipment Connection Corp., Test Equipment Connection Pte. Ltd., and TE Connection Asia Limited are industry-leading suppliers of new, refurbished and second-hand electronic test and measurement (“T&M”) equipment. The companies sell, buy, lease, rent, trade, repair and calibrate over 315 manufacturers including Anritsu, Rohde & Schwarz, Agilent, Tektronix, Advantest, LeCroy, Chroma and Fluke, with thousands of products available. The companies are a single source supplier with in-house calibration laboratories assuring that customers receive only the highest quality T&M equipment and support. Test Equipment Connection Corporation has over 250,000 customers, a 45,000 square foot warehouse and repair facility in the US, and 17 years of profitability and financial strength.

Visit http://www.TestEquipmentConnection.com

or

email sales@testequipmentconnection.com for more information.

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Test Equipment Connection Corporation
30 Skyline Drive
Lake Mary, FL 32746 USA
Voice: (800) 615-8378 x 141 | 407-804-1299

Test Equipment Connection Pte. Ltd.
6 Battery Road
#31-00 Standard Chartered Bank Building
Singapore 049909
Voice: 65-6320-8596

TE Connection Asia, Ltd.
Unit 13, 16 / FL Fotan Industrial Centre
26-28 Au Pui Wan Street
Fotan Shatin N.T. Hong Kong
Voice: 852-2690-1360

“We are aggressively buying test equipment assets from companies that are downsizing, consolidating or insolvent.” said President and COO Mike Novello. “TECBID will help our customers acquire these assets at excellent prices and allow for faster turnover of large lots and distressed inventory we buy or take in under consignment agreement. We now can better manage a wider variety of electronic industry assets and our customers benefit from this efficiency.”

About Test Equipment Connection Corporation:

Test Equipment Connection Corp., Test Equipment Connection Pte. Ltd., and TE Connection Asia Limited are industry-leading suppliers of new, refurbished and second-hand electronic test and measurement (“T&M”) equipment. The companies sell, buy, lease, rent, trade, repair and calibrate over 315 manufacturers including Anritsu, Rohde & Schwarz, Agilent, Tektronix, Advantest, LeCroy, Chroma and Fluke, with thousands of products available. The companies are a single source supplier with in-house calibration laboratories assuring that customers receive only the highest quality T&M equipment and support. Test Equipment Connection Corporation has over 250,000 customers, a 45,000 square foot warehouse and repair facility in the US, and 17 years of profitability and financial strength.

Visit www.testequipmentconnection.com or email sales@testequipmentconnection.com for more information.

Download this Press Release – Auction.pdf

Test Equipment Connection Corporation

30 Skyline Drive
Lake Mary, FL 32746 USA   (800) 615-8378 x 141

Press Release Contact Information:

Test Equipment Connection Pte. Ltd.
6 Battery Road
#31-00 Standard Chartered Bank Building
Singapore 049909

Telephone: 65-6320-8596

TE Connection Asia, Ltd.
Unit 13, 16 / FL Fotan Industrial Centre
26-28 Au Pui Wan Street
Fotan Shatin N.T.    Hong Kong: 852-2690-1360 China: 86 136-3217-2095