It’s December already, can you believe it? Where does a year go? With the year coming to a close, you may hear a lot about “Section 179” and how you’re business can benefit if you are looking to purchase some equipment before 2013.
We get just as confused as the next guy when you start talking “tax rate”, “deductions” and “depreciation”. We thought we would do a little research and try to explain how this could be a HUGE benefit to small businesses.
When we say ‘equipment’, we mean any large purchase you buy to benefit your business. Some examples: a paint booth to help your productivity, a car lift to increase your repair business or a frame machine for the busy winter months. If your business needs it to increase business and it’s an ‘investment’, it is most likely included in this category.
You can even finance it in 2013, but write it off in 2012 and save thousands.
So, section179 is what exactly? It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased (or financed) during the tax year. Wow! The FULL PURCHASE PRICE will be deducted from your gross income. (As long as the total purchase price is less than 139,000.) Continue reading Buy Before January 1st to Save Thousands.