With the end of the fiscal year approaching and the elections behind us, many businesses are looking for ways to get the most out of their savings and drive 2012 sales. In the face of upcoming tax law changes, we want to remind our loyal customers as well as other businesses out there of a very important and powerful sales tool.
Using the Section 179 accelerated depreciation deductions, businesses that have spent less than $560,000 in capital equipment costs throughout the year can deduct as much as $139,000 of their new and used equipment costs from their 2012 tax returns. The deductible amount decreases dollar-for-dollar above the $560,000 limit, but larger businesses that have exceeded the maximum may take a 50% bonus depreciation deduction off of the amount that exceeds the limit. Companies that will have net operating losses in 2012 may also take the 50% bonus deduction.
"Businesses that have spent less than $560,000 in capital equipment costs throughout the year can deduct as much as $139,000 of their new and used equipment costs from their 2012 tax returns..
Section 179 – in conjunction with standard depreciation deductions – allows some small business (such as restaurants) to deduct their entire equipment costs from their gross income on this year’s tax return. This benefit, however, is currently scheduled to end on December 31, and with the immediate future of the nation’s current tax and economic policy still somewhat unclear at this point, there is no guarantee that this date will be extended. Businesses in need of new equipment should act quickly to take advantage of the benefits of Section 179 before it expires at the end of the year. If Section 179 sounds like it will benefit your business, keep in mind that equipment that is intended to be deducted from this year’s taxes must be purchased and placed in use by December 31, 2012 to qualify for the extra deductions. Be sure to allow enough time for delivery and installation when ordering your items.
Some equipment companies are currently offering special savings to help restaurants and other businesses take full advantages advantage of the benefits of Section 179.Manitowoc, for example, is offering a Financing Program which includes a zero percent financing offer when you buy before the end of the year. Visit the Manitowoc Financing site to learn more about Section 179 Depreciation and to utilize the tax savings calculator to estimate the tax benefits to buying new equipment now.
For More Info, Visit the Section 179 Website
