The fiscal cliff deal may not have been popular, but there’s one provision that’s likely to be a hit with every small business in America. That’s what happened with Section 179.
You may recall that the popular deductions on equipment leasing and purchases were set to plunge from a useful $125,000 all the way down to $25,000 this year. For any companies with equipment-intensive needs—multiple computers and servers, backhoes, etc.—that wasn’t going to be worth a lot. That’s particularly true when you consider that as recently as 2010, the deductions could be had up to $500,000.
One brilliant side effect of all the tax benefits being extended in the fiscal cliff deal is that Section 179 has not just stayed at the $125,000 level, but increased all the way back up to $500,000. That means that 2013 and 2014 are going to be huge years for businesses to purchase or lease equipment. It’s bordering on a no-brainer, especially considering that Congress could re-visit some of these issues and change them before 2014.
As an added bonus, computer software will continue to be included. This truly is the prime time to invest in equipment and software, given the potentially huge IRS savings. You can find more of our coverage on Section 179 right here.
Unfortunately, the equipment that you purchase The good news is that it should carry over to the 2014 tax season for any big equipment acquisitions you make this year, so there’s no time like the present to start exploring your options. If you need help financing equipment, of course, your friends at Direct Capital are always here.
Your reaction to the return of Section 179 in all its glory?
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