Good news for 2013......
Section 179 is Increasing! Tax Deductions have increased to $500,000 for 2013! Section 179, which was scheduled to decrease all the way down to $25,000 for 2013, has increased to $500,000. This is a result of the H.R. 8: American Taxpayer Relief Act of 2012. (The â€œfiscal cliffâ€? bill.) Businesses purchasing less than $500,000 of qualified new and used equipment and certain software, may deduct these purchases in the year the property is placed in service. This means if you buy or lease a piece of qualifying equipment, Section 179 will allow you to deduct the FULL PURCHASE PRICE from your gross income. Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment. In short, taking advantage of the Section 179 Deduction will help your business keep more capital, while also getting needed equipment and software.
How Does the Program Work? Example 1
Tax Savings on Purchase with Section 179 Deduction: $21,000
Cost of Equipment:
(Assuming 35% tax bracket: cost of equipment x 0.35)
Net Cost of Equipment:
Calculate your Savings. Go to www.stearnsleasing.com and click on How much can I save with the tax stimulus act? or use the above examples for guidance.
Call us for more information.
1-800-247-1922 Always contact your tax advisor to verify tax or accounting issues or visit www.irs.gov for specific details.
Michelle Fuchs, Jim Peach, Mandy Eiynck, Daryn Lecy & Diane Notch
section 179, tax information, 2013