Tax day is just a week away. If you haven’t already filled out all your forms, now would be a better-than-excellent time to start doing so.
We at Direct Capital Corporation also a great time to target a Section 179 deduction. If you’ve been living under a rock in 2013, you may have missed that the deduction went rocketing back up to $500,000 this year, after being on the cusp on falling to a meager $25,000. That was due to the fiscal cliff deal Congress pushed through, and there’s now some talk about making a $250,000 deduction permanent, if Congress can find the will to get it done.
In the here and now, though, that $500,000 could be the highest deductible equipment limit any of us will see in our lifetimes. That’s why it’s imperative to take advantage of the deduction this year. Whether you’re doing so at the April 15 tax deadline or in December, there literally has never been a better time to go for it.
What You’ll Need
- Form 4562. This allows you to report depreciation on your assets. This is an essential part of every Section 179 application, as it is the only form you’ll need to fill out to apply.
- Be sure to attach Form 4562 to the rest of your tax forms and send to the IRS. You’ve now applied for a Section 179 deduction!
Easy, right? If you made several major equipment purchases or leased a few pieces in the last year—anything from computer software to a backhoe, really—you could be eligible for a deduction. It can’t possibly hurt to try, and we would strongly encourage you to do so in order to save your small business some money and help you handle the sting of those major purchases a little more easily.
Do you intend to get a Section 179 deduction?