Section 179 Expensing. Business should take advantage of Section 179 expensing this year for a couple of reasons. First, is that in 2013 businesses can elect to expense (deduct immediately) the entire cost of most new or used equipment up to a maximum of $500,000 for the first $2,000,000 of property placed in service by December 31, 2013. In 2014, the $2,000,000 cap is reduced to $200,000.
Also in 2013, businesses can take advantage of an accelerated first year bonus depreciation of 50% of the purchase price of new equipment and software placed in service by December 31, 2013 that exceeds the threshold amount of $2,000,000. This bonus depreciation is phased out in 2014.
You may contact Juan Soto at CPA Firm Soares, Sandall, Bernacchi & Petrovich at 805-485-7965 and mention the Saalex article for details on Section 179 Write-offs.