BUY YOUR USED EQUIPMENT NOW
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced.
Essentially, Section 179 works like this:
When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).
Now, while it's true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That's the whole purpose behind Section 179 - to motivate the American economy (and your business) to move in a positive direction. For most small businesses, the entire cost can be written-off on the 2014 tax return (up to $25,000).
Limits of Section 179
Section 179 does come with limits - there are caps to the total amount written off ($25,000 for 2014), and limits to the total amount of the equipment purchased ($200,000 in 2014). The deduction begins to phase out dollar-for-dollar after $200,000 is spent by a given business, so this makes it a true small and medium-sized business deduction.
Who Qualifies for Section 179?
All businesses that purchase, finance, and/or lease less than $200,000 in new or used business equipment during tax year 2014 should qualify for the Section 179 Deduction.
Most tangible goods including 'off-the-shelf' software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction. For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2014 and December 31, 2014.
The deduction begins to phase out if more than $200,000 of equipment is purchased - in fact, the deduction decreases on a dollar for dollar scale after that, making Section 179 a deduction specifically for small and medium-sized businesses.
So business owners, now is the time to buy new or used equipment!
Check out 179.org for your rights and privileges.
Contact us 1800-696-2110 for all your Recycling Equipment needs.