The current Section 179 tax deduction allows small businesses to deduct up to $139,000 worth of qualifying property that is purchased and put into use during 2012. Starting on January 1, 2013, this generous tax deduction amount is scheduled to drop to $25,000. In addition, the first-year bonus depreciation will drop from 50% to zero. It is worth noting that the first-year bonus depreciation is only eligible with new business equipment that qualifies under Section 179. Another major change that will take place is the current cap on total equipment purchases. The cap is currently $560,000 and will be dropping to $200,000 in 2013.
The IRS is still offering small businesses this valuable stimulus tax deduction through 2012 . If you have not been updated about the Section 179 Tax Deductions, here is a quick look:
2012 Section 179
|First Year Write Off:$139,000 = Maximum in 2012||$139,000|
|50% Bonus Depreciation Deduction:$150k – $139k = $11k x 50%||$5,500|
|Normal First Year Depreciation:20% in each of 5 years on remaining amount||$1,100|
|Total First Year Deduction:$139,000 + $5,500 + $1,100||$145,600|
|Tax Savings:$145,600 x 35% Tax Rate||$50,960|
|Equipment Cost After Tax:$150,000 less all Tax Deductions||$99,040|
Note that the Section 179 Deduction is expected to be drastically reduced to $25,000 in 2013. So if you’ve been thinking about getting new or used office equipment for your workplace, then THIS is definitely the best time to take action. The deadline for 2012 Section 179 is on December 31, 2012. This is your last chance to make a really good investment for your business and get higher ROI.
Save Money with Office Equipment and Copy Machine Leasing
You don’t have to purchase new office equipment and software in order to make the most of the Section 179 tax deduction. Office Equipment Leasing works with Section 179!
Officia Imaging provides cost-effective, high-quality office technology solutions and services. Moreover, our leasing partners, De Lage Landen and EverBank, offer outstanding office equipment lease solutions to our valued customers.
Contact your Officia representative today and learn about how office equipment leasing will help you – Make a Great Impression.