It seems the government is making it more and more difficult for small and medium sized businesses to operate. However, did you know that in the recent Stimulus Bills there is an incentive that is actually beneficial to business owners? In this blog, read about some general guidelines on how to take advantage of the Section 179 tax break for business owners.
Every business needs to purchase equipment to stay, not only up and running, but also up-to-date. To keep the American economy rolling and incentivize small and medium sized business to move in a positive direction, there is the Section 179 incentive to take advantage of.
Section 179 – This tax code allows small businesses to deduct the full purchase price of qualifying equipment bought or leased from your gross income.
Typically when a business buys equipment they can write off a little at a time over several years. However, most businesses would rather deduct the full purchase price of the equipment they bought in the year they bought it. The Section 179 code allows you to do just that on the 2013 tax return. So, if you bought $50,000 of qualifying equipment in 2013, you can write off $50,000 on your 2013 tax return!
Limits – Of course, like any tax code, there are limits. The total amount you can write off in 2013 is $500,000 and the total amount of the equipment purchased is limited to $2,000,000. This is to ensure the Section 179 code is a true small to mid-sized business deduction. However, if a business spends more than $2,000,000 on equipment, a Bonus Depreciation of 50% can be taken on the amount that exceeds that limit.
Qualifying Equipment – Any equipment, technology, or software you purchase or finance for your business qualifies for the Section 179 deduction. It can either be new or used, as long as the used equipment is “new to you”. The equipment must also have been put into service between January 1st, 2013 and December 31st, 2013.
Are you a small to medium-sized business owner looking for more deductions you can take on your 2013 tax return? Zero1Zero Innovations has the qualifying technology you need to not only maximize your deductions, but also help you take your business to the next level. From remote solutions, to new equipment, to IT support, we’ll blow your socks off with what we know about computers! Contact us today to see what technology gaps we can help you fill while increasing your deductions for 2013. Be sure to connect with us on Facebook, LinkedIn, and Twitter to stay up to date on the ways technology can be implemented in your business.