Tax day has come and gone. The desperate nights where you pored over forms that sounded more like droids from Star Wars than actual IRS paperwork are over. You can breathe a sigh of relief.
Yet there’s one tax benefit out there, one we absolutely love, that you can get through the end of 2012. In fact, it’s in your best interest to get it, because the amount you’ll be able to get is going to fall precipitously in 2013. It is the mighty Section 179 tax benefit.
We bring this up again and again because we like helping businesses out, and this is one of the biggest aids you can get. Imagine being able to get $139,000 in equipment without having to pay taxes on it. That’s a potentially enormous savings, and it might make the difference between being able to afford that equipment and having to hold off. Most businesses, after all, are operating in a razor thin zone where a few thousand dollars in tax breaks can solve a few problems.
Re-printed below, some of the advantages of Section 179 worth exploring.
- It still can save you a lot of money. Being able to write off up to $139,000 in equipment is significant unless you’re some sort of multi-billionaire small business owner, in which case you don’t exist. That’s down from previous years, but it’s still a lot.
- It’s going through the basement and will keep going next year. If you think $139,000 is a steep drop, wait until 2013, when it plummets to $25,000. It hasn’t been that low since 2002, and that’s basically less than one-fifth of this year. If you’re going to go for equipment, make this the year.
- Many different equipment types are eligible. There’s computers and software, business vehicles, office furniture, and machinery, among others. Chances are if you have an equipment need, you can apply for the deduction.
- It’s not a difficult deduction to figure out. If you have any issues at all, you can turn to our ebook and calculator to fill in the knowledge gaps.
If you’re thinking about getting a piece of equipment but you need financing, never forget that Direct Capital can help you out on that front. Do you intend to chase Section 179 tax benefits before they plummet in 2013?
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