Please forgive the headline if it seems a bit “sensational”, but I really needed a way to get your attention about a perfectly legal way to save a LOT of money on taxes, computer hardware and office equipment that is quickly going to pass you by if you don’t act soon.
Let me explain… Thanks to a recently updated tax deduction titled “Section 179 Election”, the Federal Government allows you to buy up to $560,000 in computers, software, and other tangible goods and thereby REDUCING your taxable income on your current year’s tax return.by $139,000
What is the Section 179 Deduction?
Section 179 of the IRS Tax Code allows a business to deduct the full purchase price of financed or leased equipment, off-the-shelf software, and other business materials for the current year. There are specified dollar limits of Section 179 – up to $560,000 for the 2012 tax year and your accountant or tax professional will be the best resource to for maximizing this. However, the biggest thing is that the equipment and software must be placed into service before December 31st in order to qualify. So if you want to take advantage of this, you need to act fast!
For 2012, a one-time “Bonus Depreciation” is available on equipment that exceeds the Section 179 deduction limit. So, for purchases over $560,000, you can deduct and additional 50% of any qualified assets placed into service before December 31st.
Does Lease Equipment Qualify
Yes, you can use both the Section 179 and Bonus Depreciation deduction with an equipment lease or finance style agreement. By taking advantage of this, you can get significant benefits with both your cash flow and end of year profits.
Always check with your accountant or tax professional to make sure of your specific business situation, but the big key here is that any equipment must be in service – not just on order – by December 31st. Give us a call today for a free consultation. Don’t delay or you may miss out!