As we approach the end the the calendar year, many of us are looking at new and/or used equipment that will help us continue to grow our businesses. There are several tax advantages for purchasing equipment now.
Below you will find helpful information from www.section179.org that can be used as a resource when looking for information on tax deductions for equipment.
2011 is the Year to Do It!
Due to the extension of Section 179 under the 'HIRE Act of 2010' - the enhanced limits under the 'Jobs Act of 2010' - and the recently enacted 100% Bonus Depreciation under the 'Tax Relief Act of 2010' - you can basically write-off 100% of all the equipment and software your business needs to buy or finance this year!
Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you probably have a lot of questions regarding Section 179. Questions like:
News Alert
Nov 3, 2011 Important 4th quarter tax planning implications. Both the 'Tax Relief Act of 2010' as well as the 'Jobs Act of 2010' that passed in late 2010 affected Section 179 in a positive way for this 2011 tax year. The newest changes are as follows:
The Section 179 Deduction limit increased to $500,000. The total amount of equipment that can be purchased increased to $2 million. This includes most new and used capital equipment, and also includes certain software.
“Bonus Depreciation” increased to 100% on qualified assets. However, this can be taken on new equipment only.
When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2011.
Also, many businesses find Section 179 Qualified Financing to be an attractive option in 2011.
