Thinking of purchasing business equipment? Better act quickly, because Section 179 expires on December 31, 2013.
Section 179 of the IRS tax code allows businesses to deduct from their gross income the full purchase price of qualifying equipment and/or software purchased or financed during the tax year instead of depreciating the asset over time. This incentive was created by the U.S. government to provide tax relief for small businesses.
According to Section179.org, 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. The 2013 deduction limit is $500,000.
Most tangible goods, including software and business vehicles (restrictions apply), qualify for the Section 179 Deduction. For basic guidelines on what property is covered, please refer to this list of qualifying equipment.
To qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service by December 31, 2013.
If XRF analyzers for the elemental analysis of scrap metal, precious metal, positive material identification (PMI) or manufacturing quality control are on your list of potential purchases, here’s some information that may help you make your choice.