Section 179 is ready to enhance your bottom line in 2014. Section 179 has been restored to its original limits of $25,000 plus an adjustment for inflation for the 2014 tax year.
Section 179 is ready to enhance your bottom line in 2013. If
you´ve been thinking about buying new or used equipment for your business, then THIS is definitely the year to do it, because the government is going to give you a VERY generous tax deduction in 2013 (a tax deduction which is scheduled to be drastically reduced in 2014).
The total deduction for 2013 is a robust $500,000. This is a large incentive for businesses of all sizes, and will result in a substantial boost to your bottom line (making your equipment purchase ROI even higher).
To help you see how much money you can save, we´re providing this Free 2013 Section 179 Allowance Calculator. This Section 179 calculator is fully updated with the current Section 179 limits and enhancements for 2013, and will give you an accurate picture of just how much you can add to your bottom line this year. Go ahead – run some numbers and see the savings Section 179 can provide for 2013:
|The calculator presents a potential tax scenario based on typical assumptions that
may not apply to your business. This page and calculator are not tax advice. The
indicated tax treatment applies only to transactions deemed to reflect a purchase
of the equipment or a capitalized lease purchase transaction. Please consult your
tax advisor to determine the tax ramifications of acquiring equipment or software
for your business.
Sure, we all love a nice tax deduction. But there are ways to make your bottom line even better – like combining Section 179 with low-rate equipment financing. This allows you to buy new (or new to you) equipment, and take full advantage of Section 179 – all while keeping your cash and liquid assets in–house.
And yes, what some of you are suspecting is indeed true – you can actually save MORE in taxes than your first year´s payments. That means Section 179 actually becomes an income stream for 2013 (oh, and you get the new equipment as well.)
Contact Crest Capital today for a no-obligation Equipment Lease or Equipment Financing Consultation, and we´ll show you how Section 179 can markedly improve your 2013 bottom line.
More on Tax Code Section 179 (with recent changes explained, and a note for the future)
Section 179 is the provision of the US Tax Code for business equipment deductions. It´s quite generous, and allows your business to deduct the full purchase price of equipment bought (and put into use) during the 2013 calendar year. Almost all legitimate business equipment qualifies: machinery; many vehicles; electronics (such a computers, laptops, tablets, and related peripherals); business software; office equipment and office machines; office furniture (like desks, chairs, tables, and fixtures); and many other types of tangible equipment. If you need it in your business, Section 179 likely includes it.
There are a few important enhancements in effect for 2013 you should be aware of:
Section 179´s deduction was scheduled to go down to $25,000 for 2013. However, the H.R. 8: American Taxpayer Relief Act of 2012 legislation has boosted 2013´s total deduction to $500,000. The threshold of total equipment purchased is now $2,000,000. And there´s still a bonus depreciation of 50%. However, this is the final year for these kinds of limits – Section 179 is slated to decrease in 2014 (all the way down to $25,000!)
These deductions are generous, and this is the last year they are scheduled to be so high. This is why we recommend taking advantage of Section 179 right now, it means a lot to your bottom line THIS YEAR.
Just contact us here, and we'll answer all of your Equipment Financing and Section 179 questions.
While it is a great tax incentive, there are limits to Section 179. The main limitation is the total cost of the deducted equipment in 2013 cannot exceed the total amount of the taxable income you are reporting for 2013 (so in other words, you can´t buy more than you report as gross taxable income....). In addition, as with any tax question, you should check your local state tax laws.
In terms of what types of business equipment is eligible for the Section 179 deduction, most common/tangible business equipment that help run a business and produce goods will qualify, including:
- Tangible business equipment / personal property (non-permanent manufacturing machines; office furniture and fixtures; computers, both desktop and portable; office machines, etc).
- Most Business Vehicles that are designated business vehicles (by design). In addition, other vehicles that have a GVW (gross vehicle weight) of 6,000 pounds or greater can qualify (this will almost certainly include some SUV type vehicles.) The limit for the 6,000 lbs. route is a $25,000 deduction. This means a dump truck will qualify for 100% of the cost, and a Hummer will qualify for $25k.
- Other types of business equipment employed for specific purposes (such as off the shelf, non-custom software, etc.... note, websites do not qualify)
- Many storage facilities and/or structures used for agricultural / horticultural purposes (small disclaimer: main buildings / plants / offices and the like do not qualify – this part of the deduction is more for “specific-needs” buildings that stand alone. Think grain silo and the like.)
- A big plus is much of the equipment listed above need not be new – it can be used (but new to you).
In the end, almost any “portable” (non-permanently installed) piece of business equipment will likely qualify. However, if you have any questions on whether something you wish to lease or finance will qualify for Section 179, you can always ask us, or reference IRS Publication 946.
US Tax Code Section 179 is the leading business equipment expense deduction, and allows small and medium sized businesses to fully deduct business equipment expenditures. It provides substantial tax relief for companies who elect to treat the purchase of qualifying equipment as an expense rather than a capital expenditure. The qualifying period runs a full calendar year – to take the deduction for 2013, the equipment must be bought and put into service between Jan 01 and Dec 31, 2013.
For further details regarding Section 179, contact your local tax advisor, visit www.irs.gov.
Need old Section 179 Calculators? No problem:
For more information about equipment leasing programs, equipment financing programs, business planning tools, and industry resources related to enhancing your bottom line, contact Crest Capital.