Direct Capital has long been a strong advocate for Section 179 as a way for small businesses to get a nice tax break. To that end, we strive to keep you up-to-date on the latest news surrounding the tax break, which for 2013 will allow you to deduct up to $500,000 in equipment purchases. That’s a lot of money!
There’s one more reason to go get Section 179 this year, and it has everything to do with bonus depreciation. For 2013, you can take up to 50% bonus depreciation on the equipment you purchase. That’s another way to save you money in the short-and-long-term, but there’s a catch. If everything stays the way it is today, 2013 will be the last year for that level of bonus depreciation.
What’s the bonus with depreciation? Taking depreciation can significantly lessen the tax bill early on for purchased equipment, and in conjunction with the deduction can mean you’re paying very little in taxes upfront for the equipment you need to put to work today. That’s nothing to sneeze at.
If you want the full benefits of Section 179 as currently constructed, this is the year to apply for a deduction. Our handy (and brief!) guide to applying for a deduction can help you out here.
Do you intend to go for a Section 179 deduction this year? Let us know in the comments!