While most of us just want to get our taxes over and done with, it’s important to remember take advantage of any tax deduction you get as a small business owner!
Section 179 of the IRS tax code allows small business owners to deduct the full amount of qualifying equipment and/or software purchases made in 2012 (up to $139,000) and receive a 50% Bonus Depreciation on any amount above the maximum deduction limit.
All businesses that purchase, finance, and/or lease less than $560,000 in new or used business equipment during tax year 2012 should qualify for the Section 179 Deduction.
For basic guidelines on what property is covered under the Section 179 tax code, click here. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased must be placed into service (opened and used) between January 1, 2012 and December 31, 2012.
For more information on the Section 179 tax deduction, please visit www.irs.gov or www.section179.org.
