Business owners, “the moving walkway is now ending.” The punch bowl is being pulled away. Section 179 of the United States Tax Code will essentially evaporate December 31 of this year. It is really going to end, and you are going to kick yourself if you blew big money by not taking advantage of the best goodie package the awful Feds have provided in decades.
This is really quite important for any small business that needs a truck, crane or parts cleaner. Even a screw machine or a hundred iPads. If you are making money or even if you are not, Section 179 allows you to deduct the expenditure of up to $500,000 with bonus depreciation on expenditures up to $2,000,000 of new or used capital equipment or software from your gross income in 2013.
Last year our Graff-Pinkert machine tool business bought long needed cleaning equipment for the shop from Graymills Corporation, which has easily paid for itself by speeding up output of cleaned machinery components. This year we will buy more cleaning and painting equipment. Section 179 does not differentiate between new and used equipment as past depreciation rules have done.
Graff-Pinkert is seeing a pickup in machinery buying at the moment. Section 179’s impending demise seems to be in play.
This blog is potentially self-serving if it stimulates machine sales for Graff-Pinkert and ad sales for Today’s Machining World. (Would that be so terrible?) The idiots in Washington have hammered small business so mercilessly for years, I feel fully justified in promoting the use of this finite tax benefit.
I would like to see Section 179 continue indefinitely, but with the political death squeeze going in Washington between the two parties it will not happen.
Business folks, you have 45 days to take advantage of this tax provision.
For more information check out www.section179.org/.
Question: Do you plan on purchasing anything because of Section 179?