November 2014 and Section 179

By | November 11, 2014

2014 Section 179 small business tax deductionI wish I had better news to report in terms of Section 179’s limits. But I don’t. It looks like we’re going to ride the year out with a $25,000 maximum deduction. Yes, there could be a post midterm election surprise, but time is running out, and congress has never been known to act speedy.

In fact, “time” is why I am posting this. Because hey, not all is lost. Section 179 is still a robust $25,000 deduction. If you buy equipment, it’s a no-brainer to use it. In fact, most small to medium businesses never hit that number in any given year, so for many of you reading this, the limit is immaterial – you’ll simply take a deduction on what you buy, up to the allotted $25,000.

But for those of you who haven’t yet made that equipment purchase, let’s not let this $25,000 go to waste. You should definitely make plans to take advantage of it. Ok, maybe you don’t buy that half million dollar piece you had your eye on – it’s still advantageous to buy a few new computers or office equipment or office furniture or a new business vehicle. Because if you don’t use it, you lose it – that’s a free 25k sitting there. It’s bad business to let it go to waste.

Further on the “good news” front, there’s always a chance that any increase to Section 179 is made retroactive. Now, this doesn’t mean you go on a spending spree because “Fletch said”, but if you are already over the limit and a bit worried it won’t be raised, I say relax. And put that new equipment you already bought to good use.

Brighter Section 179 days are around the corner – bank on it!

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