For 2004, taxpayers can expense up to $102,000 in property purchased for business use. You are allowed the full $102,000 even if you purchased equipment for your business on the last day of your tax year.

The new law allows taxpayers to make or revoke a §179 expense election without first obtaining the consent of the IRS. The option to revoke the §179 expense election is irrevocable once it is made.

For 2003 through 2005, off-the-shelf computer software is eligible for expensing under §179. This change allows you to write off the cost in one year as opposed to stretching your deduction over three years.

Unless §179 is further amended for years after 2005, these new provisions will revert back to prior law for the 2006 tax year. This means that off-the-shelf computer software will no longer be eligible for expensing and taxpayers will no longer be able to revoke the §179 election without IRS consent.