Friday, October 26, 2012
Could your business's fleet take advantage of a Section 179 Tax Deduction?
Ok I am not a CPA. I did not fare well in Accounting back in business school. My friends might say that I would struggle to balance a check book. They may not be wrong. But I do have good people around me and sometimes they bring up resources that I'd like to share with others. I remind you - please check with your Accountant before you make any purchase decision based on this information. Ok my disclaimer is over and remember this would apply to NEW vehicle purchases only.
For 2012, the 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) When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2012.
So if a Company purchases a Pickup Truck for $40,000 after All incentives, the total tax savings will be an additional $14,000 or 35% of the Vehicle Price.
What this means for your company:These deductions are generous, and this is the last year they are scheduled to be so high. This is why we recommend taking advantage of Section 179 right now, it means a lot to your bottom line THIS YEAR
See SECTION179.ORG for Full Details and consult a tax professional for your eligibility.