It’s hard to believe, but 2014 is drawing to a close in a hurry, which means it’s time for many businesses to perform a review of their finances for the year and make a last-minute push for any big organizational goals they have. If you have been considering getting some new equipment for your company, beginning the financing process in these last couple months of the year could be beneficial for you.
One such benefit comes through the Section 179 depreciation deduction. This deduction enables taxpayers to deduct certain types of property as expenses rather than forcing the taxpayer to deal with the cost of depreciation.
There are some limits to this deduction. Any deductions filed under Section 179 must be property that is tangible and depreciable, acquired for use “in the active conduct” of business. Common examples include real estate property, vehicles and business equipment, such as computers or medical equipment and technology.
There is also a dollar limitation to the amount that you can claim under Section 179. The maximum one-time deduction you can take in a year is $500,000.
By taking advantage of Section 179 benefits within the next couple months, you’ll be able to get the equipment you still need for your business before the end of the year and benefit from the tax deductions when you file your taxes in early 2015.
Benefiting from payment deferral
Depending on your financing plan, you may also have the option to defer payments until a later time. This means that within the last couple months of this year, you could get the equipment you need now and not worry about making payments until the New Year starts.
For this reason, many companies find it extremely beneficial to get the equipment they need at the end of the year, allowing them to go fresh into the new year with the equipment they need to achieve their company goals.
Work with a leasing company today for assistance in equipment financing
By taking advantage of deferred payment options and Section 179 tax deductions, you can ensure that your equipment will basically pay for itself. Avoid the burden of depreciation by working with our equipment financing specialists in the leasing / financing world.
With the US senate approving the IRS Section 179 Tax Extender Bill, financing / leasing deductions are restored to previous limits of 500K. The limit is also retroactive to 2014 which will asisst many customer who have choose to lease or finance there equipment.