Time is running out for small businesses to save on incredible tax perks. The year 2009 is more than half over, and some impressive tax incentives expire on December 31st. Before 2010 arrives, small business owners can take a proactive approach to capitalize on these special tax perks. Here are some of the most lucrative tax benefits that are available to small business owners, as well as supporting details about what needs to be done to take advantage of them in 2009.

Bonus Depreciation Break

The government has made provisions for something called a bonus depreciation break this year. A bonus depreciation break applies to just about all types of new business equipment, as well as some types of software. It is possible for small businesses to claim tax deduction that is equal to 50% of the remaining balance due for the equipment. In certain cases, businesses will be able to create some net operating losses or increase the existing net operating loss numbers. The net operating loss is, of course, another source of tax break for small businesses. This bonus depreciation break must be taken advantage of before December 31st, 2009.

Section 179 Deduction

Section 179 is a special deduction that relates to the depreciation of certain equipment that a business has procured. For example, any new equipment or software that has been purchased is eligible for a deduction as soon as it is put into use at the business. This deduction applies for equipment and/or software purchases up to $250,000. These terms are not applicable to equipment that has been leased. In 2010, the Section 179 deduction will be reduced to cover purchases up to $135,000. This is a significant reduction, and therefore taking advantage of Section 179 in the year 2009 is important.

There is a possibility that the government will to extend the deadline for bonus depreciation breaks and Section 179 deduction beyond December 31st, 2009. However, there is no concrete guarantee for small business owners beyond this target deadline. It is more prudent to strike now while the iron is hot, rather than waiting it out and becoming ineligible for perks beyond 2009.