Current Section 179 Tax Benefit Expiring

The Section 179 Tax Benefit for 2013 is Expiring…Use it Now or Lose it!

Time is running out!

The accelerated depreciation deduction allowance permitted under IRS Section 179 is $500,000 for 2013.  This means up to $500,000 in qualifying equipment can be expensed this year if it is placed into service by December 31, 2013.  This $500,000 limit expires at the end of 2013 and will be reduced to $25,000 as of January 1, 2014.  This lower limit significantly reduces the tax savings associated with the use of the Section 179 deduction so business entities seeking to acquire software and equipment should strongly consider doing so in 2013.

Consider this scenario:

In this example a business realizes 300% more in tax savings by acquiring the equipment they need in 2013 as opposed to waiting until 2014!

Note: The calculators present a potential tax scenario based on typical assumptions.  QTE Manufacturing Solutions is not offering legal, tax or financial advise. Please consult your tax advisor to discuss the tax advantage of acquiring equipment or software for your business.