Linda Barzini
Well-known member
The government small business stimulus package ends on Dec. 31. Basically, up to $500,000 can be deducted dollar-for-dollar off your 2013 income. Not amortized or depreciated, but actually deducted. So if your business is profitable and you are planning on buying a RED within the next three years, this is the year to purchase because it is like a blanket 35% sale on everything. This applies to all equipment too.
Most small businesses will probably be LLC's or Subchapter S entities so they will pay around 35% in taxes. Therefore, this tax incentive acts like a 35% sale.
All the information can be found at www.Section179.org. Just about all equipment qualifies, certainly ALL RED PRODUCTS. I don't think this applies to purchases as individuals, but its a great deal for small businesses.
From the Website.
All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during tax year 2013 should qualify for the Section 179 Deduction. If a business is unprofitable in 2013, and has no taxable income to use the deduction, that business can elect to use 50% Bonus Depreciation and carry-forward to a year when the business is profitable.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Most small businesses will probably be LLC's or Subchapter S entities so they will pay around 35% in taxes. Therefore, this tax incentive acts like a 35% sale.
All the information can be found at www.Section179.org. Just about all equipment qualifies, certainly ALL RED PRODUCTS. I don't think this applies to purchases as individuals, but its a great deal for small businesses.
From the Website.
All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during tax year 2013 should qualify for the Section 179 Deduction. If a business is unprofitable in 2013, and has no taxable income to use the deduction, that business can elect to use 50% Bonus Depreciation and carry-forward to a year when the business is profitable.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.