Here we are, right at the end of December. And besides the holidays and presents and eggnog and such, we have my favorite year-end event – Section 179. While other companies slow down for the holidays, equipment financing companies always see a little year-end spike as folks try and take advantage of the generous tax code.
(…on that note, this time of year always reminds me of my office supply store job I had years ago. You would think Dec 30/31 would be slow for a “business” type store, but it never was – in fact, we always had a crush of people buying computers, printers, cameras, office furniture… anything they could to take advantage of Section 179. I know I’ve mentioned that story before, but it’s worth repeating, because it illustrates that to qualify for the current year, your equipment must be purchased and put into use by midnight, 12/31.)
This year, the government actually did something good… they raised Section 179’s limits for 2013. In fact, it’s back up to a healthy $500,000. And this is good for new (or new-to-you) equipment. Considering that it was going to be a paltry $25,000, this amendment is very welcome indeed. But if you are reading these words, there’s little time left – it’s getting close to New Year’s Eve.
Here’s a quick rundown of the type of equipment that generally qualifies:
- Tangible equipment for general business use.
- Tangible personal property that is used in business (partial use qualifies as well. For example, Laptops that are also used for personal computing can be partially deducted.)
- Business Vehicles with a GVW (gross vehicle weight) that exceeds 6,000 lbs. (this means cargo vans, dump trucks, heavy machinery, etc.)
- Computers and “off-the-shelf” software (yay!!)
- Office Furniture and Office Machines (double yay – who doesn’t need a new desk chair?)
- “Installed” equipment that is attached to your property, but is not a structural part of the building (like a loading crane or similar).
There you go – you have a few days left, so hop to it!!
Have a great holiday, and I’ll see you next year.