If you’re considering purchasing any new or used equipment or new package software, look at the government’s current tax incentives for 2012. Now through December 31, business owners who purchase qualified equipment or software can save thousands by taking advantage of this year’s Section 179 write off and Bonus Depreciation.
- Maximum Section 179 Deductions for 2012 is $139,000
- Qualifying property must meet these general rules:
- Tangible personal property
- New or used equipment
- Must be actively used for the business
- The asset has a normal depreciation deduction
- It must have been purchased and put into use before December 31, 2012
- Computer software can qualify if:
- The software is readily available for the general public
- The software was not “significantly” modified to operate within the business
If you are purchasing additional equipment or software for your business the current tax benefits can save you money. To learn how this can impact your bottom line contact your tax accountant, but remember you must take possession by December 31st.