Tax Advantages of Leasing Equipment – Getting the Most out of Section 179
Should Tax Changes in 2014 Affect your Equipment Leasing Decisions?
Did your business lease equipment in 2013? Then you should be familiar with the tax advantages of leasing equipment. Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179. Section 179 allows a business to deduct, the full purchase price of financed or leased equipment or qualified software for the current tax year. The only conditions are that the equipment purchased, financed or leased has to be within specified dollar limits (see IRS.gov for details), and the equipment must be placed into service in the same tax year that the deduction is being taken.
in 2013 may allow you to save more in taxes than you spent on your total first year’s lease payments, making this a great bottom-line deduction. You could get the new equipment and a big deduction. It’s almost like getting to use the equipment free your first year.
The maximum deduction for the cost of new and used assets placed in service during 2013 was $500,000.Advantage Equipment Leasing strongly encourages you to consult a qualified tax professional to help you get the most out of Section 179.