What is the first year limitation on expensing business equipment ?

You can elect to expense part or all of the cost of section 179 property (defined earlier) that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business. Generally, the maximum section 179 expense deduction is $500,000 for section 179 property placed in service in 2010 during the tax year beginning in 2010. Qualified real property that is elected to be treated as section 179 property is limited to $250,000 of the maximum section 179 deduction of $500,000 for 2010. If you elect to expense section 179 property, you must reduce the amount on which you figure your depreciation or amortization deduction (including any special depreciation allowance) by the section 179 expense deduction.