A special tax break has been extended by the IRS that allows you to deduct the IT expenditures of your businesss in 2011 all in one year. 

Previously, you’d have to deduct the expense over the course of several years. Now, a new tax code called Section 179 allows you to take a deduction as an expense rather than as property that depreciates.

At this stage, the provisions allow up to $500,000 worth of deductions. These include computer systems, tablets, printers, smartphones, accessories, chairs, tables, furniture, and even manufacturing equipment / vehicles above a certain weight.

The way it works is if you spend any profits you make in 2011 on IT equipment, you only pay taxes on the remainder. With smart planning, this can tremendously ease the burden of running your business.

This program was meant to expire last year, but this provision has been extended to the end of 2011. This makes this year a wonderful year for purchases, as it allows you to take an immediate write-off.