what rate of depreciation on new machineries purchase?
The maximum section 179 deduction you can elect for property you placed in service in 2006 is increased to $108,000 for quali?fied section 179 property. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $430,000. Assuming you bought this equipment and it was placed into service in 2006, you dont have to capitalize it and depreciate it. You can elect to expense the equipment up to $108,000. This limitation gets reduced dollar for dollar for the amount of equipment placed into service in 2006 that exceeds $430,000.
