Orange County, CA - You have Less Than 10 Days to Save Big on Tax Write-offs for Equipment Purchases. You need to act now.
The Section 179 deduction, named for a provision in the federal tax law, allows a small business to deduct -up front- the entire cost of equipment ranging from computers to furniture to vehicles and machinery. The deduction is normally $25,000, but for the past years our lawmakers in DC have increased that amount substantially.
I have some great news for you. Here is an excerpt an article on The Hill regarding Section 179 updates. It says recent legislation was passed to raise the instant depreciation level to $500,000.
The tax package indefinitely extends the research and development tax credit, enhanced section 179 small-business expensing and the active-financing exception, and it extends for five years bonus depreciation and the controlled-foreign corporation look-through rule.
Enhanced section 179 and bonus depreciation allow businesses to expense more of their capital investments immediately. The active-financing exception and CFC look-through rule help U.S. companies compete overseas, according to officials with the National Association of Manufacturers.
NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman said in a news release that the tax package is “a historic and very promising breakthrough.”
“The R&D tax credit, investment incentives for manufacturers of all sizes and provisions that affect U.S. global companies are all key to helping manufacturers innovate, compete in a global marketplace and contribute to U.S. economic growth and job creation,” she said.
It sounds like now is the time to buy computer hardware and software if you need it. Of course you need to contact your tax professional before taking any action to make sure what is best for your company.
Here is a link to the Full Article at The Hill.
Here is a Link to Section 179.org on this topic