Electing Section 179 deductions for equipment in these final days of 2013

As a business owner, you are not a tax expert, but you do not need to be. Just make yourself aware of a year-end to-do list item that will save you real dollars and cents. One easy strategy to provide basic year-end tax planning ideas is to partner with a local tax expert.

Stephen Osborne, Tax Planning Expert at McDonald & Osborne, PA in Naples, Florida advises that “Section 179 can be a very useful year-end planning tool, especially in years in which the business has been very profitable and the owners are facing a large tax liability. If large purchases need to be made anyway, might as well make them while
cash is available. Electing section 179 on vehicles, equipment, etc. can wipe out up to $500,000 of net income in 2013 thus lowering your tax liability.”

If you purchased, financed or leased equipment in 2013 and placed it into service during the calendar year, you should be reminded about the option to elect to take the Section 179 deduction.  It is not automatic. Business owners must elect to take it in order to capture the available tax savings. And, there are literally JUST DAYS LEFT to do this if you haven’t done so already.  YOU CAN STILL MAXIMIZE YOUR DEDUCTIONS AND CONSIDER PURCHASING EQUIPMENT THAT WILL MEET THIS REQUIREMENT.

According to Osborne, “2013 is an especially important year for Section 179 for two reasons. First, limits on the deduction are currently set to drop from $500,000 in 2013 to $25,000 in January 2014 unless Congress makes any more last minute extensions on current rules. Second, higher-income business owners that will be facing the new 39.6% tax rate and the 0.9% Medicare surtax will be looking for any additional deductions they can find.”

“With so much uncertainty looking into 2014 and beyond, it makes sense to take the
deduction and defer taxes now instead of waiting until next year,” says Osborne.

Contact us TODAY for a free consultation.  Our knowledgeable staff can help you increase your office efficiencies and add to your office’s bottom line at the same time.  A GREAT YEAR-END STRATEGY FOR ALL!

Comments are closed.

Facebook IconYouTube IconGoogle+