It’s hard to believe, but 2014 is coming to a close in a hurry, which means it’s time for many companies to review their finances for the year and make a last-minute push for whatever major organizational goals they have. If you’ve been considering purchasing some new equipment for your business, starting the financing process in these last months of the year could be beneficial for you.
One of those benefits comes through the Section 179 depreciation deduction. This deduction allows taxpayers to deduct certain types of property as expenses instead of forcing the taxpayer to bear the cost of depreciation.
There are some limits to this deduction. Any deduction filed under Section 179 must be tangible and depreciable property, acquired for use “in the active conduct” of business. Common examples include real estate, vehicles, and business equipment such as computers or medical equipment and technology.
There is also a dollar limit on the amount you can claim under Section 179. The maximum single deduction you can take in a year is $500,000.
By taking advantage of Section 179 benefits in the next two months, you will be able to get the equipment you still need for your business before the end of the year and benefit from tax deductions when you file your taxes in early 2015.
Benefit from the deferral of payment
Depending on your financing plan, you may also have the option to defer payments until a later time. This means that in the last two months of this year, you could get the equipment you need now and not worry about making payments until the New Year begins.
For this reason, many companies find it extremely beneficial to get the equipment they need at the end of the year, allowing them to start the new year with the equipment they need to achieve company goals.
Work with a leasing company today for equipment financing assistance
By taking advantage of deferred payment options and Section 179 tax deductions, you can ensure that your equipment will essentially pay for itself. Avoid the burden of depreciation by working with our equipment financing specialists in the world of leasing/financing.
With the US Senate’s passage of the IRS Section 179 Tax Extension Bill, finance/lease deductions are restored to the previous limits of 500K. The limit is also retroactive to 2014, which will help many customers who chose to lease or finance their equipment.
