See Bernie’s New Truck & How He Got a 100% Write Off. You Can Too BEFORE 12/31.

I (Bernie) just bought a new truck for DSC Office Systems and was able to write off 100% under Section 179.  This special tax savings opportunity applies to capital purchases that are made before December 31, 2013. 

This could be a great opportunity to get a purchase made before the end of the year if you are in the market for a truck, a COPIER, machinery, a PRINTER, office furniture, a DIGITAL DUPLICATOR, or even FINISHING EQUIPMENT could all be options under Section 179.

I’m no CPA, so don’t take my word for it.  You should check with your CPA to confirm that you can take advantage of this opportunity. Below is a basic summary for the non-financial types.  We can expedite a purchase of office equipment for you.  Just call 513-821-1199.

SECTION 179 SUMMARY

How to get the most out of the Section 179 Deduction

Instead of deducting qualifying equipment over time, according to a set depreciation schedule-Section 179 allows businesses to deduct the full price during the first tax year.

What this means?

Depending on your tax bracket, you can recover 7% the first tax year but with Section 179 you save 35% the first tax year.  That is more cash flow for your company right now.

Lease or Purchase

If you finance the purchase, lease with a nominal option to purchase or purchase outright, even though you are paying only the lease payments out of pocket, you can deduct the full purchase price on your taxes.

Section 179 and Leasing go Hand in Hand

Leasing conserves cash, preserves credit and can improve cash flow. 

Time is running out

Section 179 limits are being reduced after December 31, 2013 at midnight.

Section 179 -- Deduction Limit

What it is now: The Section 179 deduction and qualifying property limits are $500,000 and $2,000,000, respectively. In addition, off-the shelf computer software qualifies for Section 179 expensing. What happens in 2014: After 2013, the deduction and qualifying property limits are $25,000 and $200,000, respectively. Off-the-shelf software does not qualify for Section 179 expensing.

As with any tax planning or IRS codes, check with your CPA or Tax advisor

IRS Source: http://www.irs.gov/uac/Net-Operating-Loss-Carryback,-Sec.-179-Deduction-and-Other-ARRA-Business-Provisions

Other Sources for this summary: Leaf leasing, Dr. Wayne Essex