It’s official. The bill, which temporarily extends a number of expired tax provisions, related to individuals, business and more, was passed by the House, the Senate and signed into law by the President. The bill is a one-year, retroactive extension of the tax breaks, only lasting through the end of the month, specifically December 31st, 2014. Yes, that means the end of this month.
• Section 179 Expense Provision allows up
to $500,000, with a $2,000,000 cap on
expenditures for equipment purchases
• 50% Bonus Depreciation on equipment
Consider investing money in YOUR company and reducing your taxable income. The Section 179 expense allowance is something every business owner should know about since it’s the difference between a capital investment in your business and simply paying that money as taxes.
Most equipment purchased in the 2014 calendar year is eligible for tax deductions that substantially reduce the net cost of owning a machine. In addition to those savings, equipment bought and put into service this year can be eligible for 50% bonus depreciation ON TOP of normal first-year depreciation.
If you’ve got the cash flow, think about upgrading your fleet. If you’re thinking of buying later you could be skipping out on tens of thousands of dollars in tax savings – if not more (see example). Put that money where it belongs: into your business that you’ve worked hard to establish. Don’t give it away but put it to work by investing in equipment for your business. We’ve got inventory that qualifies for these offers. Contact any of our three Chicagoland locations for more information.
And remember: This information should not be considered tax advice. Contact the IRS and your tax advisor for details. Equipment must be purchased and placed into service by 12/31/14.