The Section 179 Deduction for Leased Equipment has been enhanced for 2013 tax year. This is due to the passage of H.R.8: American Taxpayer Relief Act of 2012 (the “fiscal cliff/fiscal crisis” bill)*
- 2013 Deduction Limit = $500,000
- 2013 Limit on Capital Purchases = $2,000,000
- 2013 Bonus Depreciation = 50%
*The above limits are as of 1/1/2013, and are for tax year 2013
- Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.
- Bonus depreciation can be taken on new equipment only (no used equipment, no software)
- Please check with your CPA or tax advisor for further information
- Material goods that generally qualify for the Section 179 Deduction
- Please keep in mind that to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1, 2013 and December 31, 2013
- Equipment (machines, etc) purchased for business use
- Tangible personal property used in business
- Business vehicles with a gross vehicle weight in excess of 6,000 lbs
- Computer “off-the-shelf” software
- Office furniture
- Office equipment
- Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
- Partial business use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
Section 179 Deductions allow you to deduct the full amount for the cost of the equipment and/or software without paying the full amount this year. The amount you save in taxes can actually exceed your total first year’s lease payments making this a great bottom-line deduction. You get the new equipment and a profit!
For a quote on your equipment leasing needs for 2013 and more information on how to get the most out of your Section 179 Deduction, contact Advantage Leasing today! To estimate your monthly payments, try our instant equipment lease calculator.
[…] Section179 — This rule allows total annual deduction of up to $100,000 for qualified equipment purchased or leased through a capital lease. The one catch is that the company’s total equipment expenditures cannot exceed $400,000 for the current tax year. […]