It is APPROVED…finally!

It is definately better late than never, but earlier this week our Government signed into law the tax code Section 179 increase for 2014.

What had been a maximum deduction of $25,000 for the past 11.5 months, Section 179 now has a max deduction of $500,000, that includes all of 2014 purchases.  Tax code 179 will go back down to $25,000 starting January 1st for the year 2015.

On Tuesday, December 16, the Senate approved a bill that the house had already passed 2 weeks ago.  This bill keeps deduction levels intact;  you can now still deduct the full purchase price of equipment and big ticket items in a few different categories up to $500,000.  Big equipment is typically what is thought of for these situations, but according to Section179.orgthe deduction covers computers, office furniture, some business vehicles, “off-the-shelf” software for business purposes and “tangible personal property used in business,” just to name a few items.

If you are on the fence about any year end purchases, this may be the information you needed to help make the decision.

As with anything related to decisions based on tax incentives, be sure to consult your own accountant or tax specialist to make sure that you have the best and most accurate information that you need. 

Here are some additional resources for you:

www.section179.org

Q&A: Claiming a Section 179 Deduction