Napier & Company, LCC

Businesses can deduct up to $105,000 per year for qualifying property that is placed into service in 2005. Qualifying property is defined as depreciable tangible personal property (such as machines, equipment, furniture) and computer software that is purchased for use in the active conduct of a trade or business. The $105,000 amount is reduced (but not below zero) by the amount. The cost of qualifying property placed in service during the taxable year exceeds $420,000. The deduction is also limited by the amount of net income of the business. Income cannot be released below zero.