Limit on Section 179 Raised to $500,000
The Tax Extenders Bill passed by the House on Dec 3, 2014 was voted on and passed by the Senate on Dec 16, 2014 retroactively expanding the Section 179 deduction limits thru 12/31/2014. Only this 2014 tax year will be covered by this measure - therefore it is a good business decision for many to buy/finance equipment immediately to make the December 31, 2014 cutoff for the write-off provisions.
How Much Can I Save on My Taxes in 2014?
It depends on the amount of qualifying equipment and software that you purchase and put into use before December 31st. Check out the Section 179 Calculator to see how much you can save. For any size business the savings can be huge.
What Sort of Equipment Qualifies in 2014?
Most tangible business equipment qualifies.
- Equipment (machines, etc) purchased for business use
- Tangible personal property used in business
- Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
- Computer "Off-the-Shelf" Software
- Office Furniture
- Office Equipment
- Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
- Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes)
Section 179 is really very simple. You buy, finance or lease qualifying equipment and/or software, and then take a full tax deduction on it this year.