As part of the IRS tax code, Section 179 gives small business owners a one-year tax break when they invest in and install office equipment or qualified business software. However, the Section 179 tax deduction only applies to equipment purchased before December 31, 2012. So time is running out!
Small businesses, like yours, can take advantage of Section 179 to write-off the entire purchase price of qualifying equipment (new or used) and software for one year, instead of adhering to typical five- to seven- year depreciation schedules. Under Section 179, you can expense up to $139,000 as a deduction as long as total purchases do not exceed $560,000.
Section 179 deduction is expected to be reduced to just $25,000 in 2013.
Bonus Depreciation: This bonus deduction, which can be combined with the Section 179 deduction, allows for an additional write-off of 50% of the undepreciated balance for capital expenditures and depreciable property (i.e., manufacturing equipment, computers, software, etc.). This bonus depreciation is scheduled to expire after December 31, 2012.
Act Now Before the Tax Deduction of Section 179 is Reduced!
If you have any questions about Section 179, please contact Enoch by calling (410) 561-7600 or click here today!