Business owners don’t have a long list of reasons to look forward to tax season. Here’s at least one: IRS Section 179. In true tax code form, there are some important rules and regulations, but here’s the gist of it.
When you purchase equipment for your business, the IRS lets you write it off little by little. As an example, if a business purchases 25 computers, it can write off a certain amount of the purchase price over the course of five to seven years. Of course, it would be most beneficial to write off the entire price the year they were purchased.
That’s the beauty of Section 179. Instead of taking the deduction piecemeal, a business can deduct all at once (for purchases totaling less than $500,000 and a total investment under $2 million) on qualifying business equipment acquired and placed into service between January 1, 2013 through December 31, 2013. The American Taxpayer Relief Act of 2012 provides for a 50 percent bonus depreciation deduction for new purchases over the $2 million mark.
The belief is that the provision will motivate businesses to buy, thus stimulating the economy. If you have questions, this website may help clear them up.
If you’ve been pondering the purchase of new desks, chairs, or an entirely new office, 2013 may be the best time to buy. Come January, you’ll be glad you did. Click here to find the Herman Miller dealer closest to you.
IRS Circular 230 Disclosure - As required by IRS rules, although this written communication may address certain tax issues, the issuer of this document, along with any attachments, did not intend nor write the advice to be used to avoid any penalty imposed by a taxing authority, nor may the user/recipient of this document use this document’s written tax advice for that purpose. Nor may it be used to promote, market or recommend to another party any transaction or matter addressed herein.