Thank you for making 2012 successful for 360IT PARTNERS. Seems that this year has flown by as we prepare to ring in 2013. If your company is doing some strategic tax planning, there is still time to take advantage of Section 179 for capital expenditures of up to $560K this year. Today, Section 179 is one of the few incentives contained in any of the recent Stimulus Bills that actually helps small business. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for Small Business – and millions of small businesses are actually taking action and getting real benefit.
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. 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 (adding total equipment, software, and vehicles totaling less than $560,000 in 2012), the entire cost can be written-off on the 2012 tax return.
Please let me know if we can assist you with any upcoming projects.
All the best,
Martin A. Joseph, President