2013 Tax Year
For the 2013 tax year, the Section 179 Expensing Limit has been raised back to $500,000, the increased level in effect in 2010 and 2011 and is not reduced until the cost of section 179 property placed in service exceeds $2 Million.
This is a great way for you to maximize your bottom line and increase your ROI.
Click this link to download the 154-page Act (better known as the "Fiscal Crisis Bill") and go to 'SEC.315. Extension of Increased Expensing Limitations and Treatment of Certain Real Property as Section 179 Property.'
2013 Limit on Capital Purchases = $2 Million
Section 179 Threshold for total of equipment & software that can be purchased has increased to $2 Million (threshold would have been only $500,000 prior to the new legislation).
2013-2014 Bonus Depreciation = 50%
The new law allows 50% "Bonus Depreciation" on qualified assets placed in service during 2013 and 2014.
Section 179 Deduction applies to most new and used capital equipment, and also includes certain software.
Bonus Depreciation only applies to new equipment (no used equipment, no software).
When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business has no taxable profit in the given tax year.
Disclaimer: Sterling Machinery in no way guarantees any deduction, we are not tax professionals and you should research the option that is best for your individual situation with a tax professional.