Did you miss Section 179? Well, don’t miss it again

By | January 23, 2012

section 179 expirationI know, I know, I harp on Section 179 all the time. I tell you to take advantage of it, or you may miss out. You read that so much here, you must think I’m a broken record (insert joke again about nobody knowing what that will mean in a few years…)

But seriously, I say it all the time – use Section 179 before it goes down, or even goes away. And while you’re at it, combine it with equipment financing to really get some bang for your buck. Over and over I say it, and I always warn that the gravy train may end.

Well, this time it did. Did you listen to me? Did you take advantage of Section 179 before the New Year? Because if you didn’t, you lost out. The Section 179 deduction WAS $500,000 for 2011. But you know how much it is in 2012?  $139,000. Yes, it went down that much (don’t yell at me – I had nothing to do with this – hey, I tried to warn everyone!)

But here’s the good news – that’s still a heck of a deduction. And it’s for 2012 only. In 2013, Section 179 is scheduled to go down even MORE – all the way down to $25,000. And it’s an election year – the politicians have a lot more to do this year than worry about amending Section 179, so there’s a good chance this is going to stay just like it is (in these times, with things like Occupy Wall Street going on, do you think business deductions will be all that popular with people? I know Section 179 is a good thing, but it can easily be twisted to be seen as helping wealthy people – after all, it’s still sometimes known as the “Hummer Tax Break”.)

So here’s my advice – take advantage of Section 179 THIS year. Don’t miss out again. Call an equipment financing company, get yourself an equipment lease, buy some equipment, and write it off. Take advantage of the six-figure tax deduction while it’s still here.

Have a great day, everyone!

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