Recently, the IRS made some changes to the section 179 expense deduction that many business owners have taken advantage of. Though these changes have caused the limits to decrease, business owners can still find amazing tax savings when they work with their accountant to get this deduction. If you own a business, you will certainly find that you can take advantage of this deduction and put some money back into your pockets. With this deduction, you will be able to deduct the cost of the assets you have purchased at one time, instead of deducting the cost a little at a time.
What You Should Know About This Deduction
With this deduction, you will be able to deduct up to $125,000 of equipment in one year. There is also a bonus depreciation that you may be eligible for in some cases. Though these amounts are lower than the previous amounts, you will still get very significant tax savings for your business. As long as you buy your new property before December 31, 2013, you will be able to take advantage of these limits. As you know, equipment and property that is outdated or slow can negatively affect your company. Because of that and because of the amazing tax savings you can get, it can be in your best interest to purchase new equipment now, before it’s too late for this year.
What is Included in This Deduction
Many different types of equipment can be eligible for the section 179 expense deduction. This deduction is designed to help businesses grow so much of the equipment and property that you will use on a daily basis can be used. Some specific examples of property that can be deducted includes computers, software, business vehicles and machinery. In order for the property to be eligible, however, at least 50% of its use must be for business. So, if you want to use a new computer for this deduction, you will need to be sure that you are using it, at least half the time, for business.
Because the IRS is constantly updating and changing their rules, it is important that you make sure you are reaching out to a professional in order to be sure that you are eligible for this deduction and not just doing it on your own.
When you wish to use the section 179 expense deduction, reach out to the experts at Walker Reid Strategies. Reach them online at http://www.walkerreid.com or by phone, (800) 662-179D.