After all, the newest number is still $139,000 for equipment, which can buy you quite a few pieces if you’re not looking for heavy construction equipment. Bonus depreciation is still 50% for 2012, as well. And if we’re talking about capital purchases for your small business, the limit is a whopping $560,000. It’s fair to say that’s plenty for cash covered by 2012 Section 179.
That’s a lot of money to be able to write off on your taxes for the IRS, and that’s more money in your pocket when your returns come back in. If you can argue with that, you don’t love money.
What can you use a Section 179 deduction for in 2012? A few things:
- Major equipment purchases, i.e. forklifts and cranes
- Computer software that isn’t custom and is “off-the-shelf”
- Smaller equipment, such as computers and servers
Chances are you could use some of that. Getting the deduction is also remarkably easy, as all you have to do is fill out IRS Form 4562 and file it alongside the rest of your ponderous mountains of tax paperwork. If you need a handy guide to filling out Form 4562, check out this article from BizEngine.
We’ll be releasing an updated version of our popular Direct Capital Section 179 ebook for your reading pleasure next week. This ebook will help you go from just starting out to getting your deduction, and an updated calculator will help you figure out just how much you can deduct. We hope you find both useful.
Will you go after a Section 179 deduction in 2012?
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