Section 179 Tax Break
Could your printers and barcode scanners be saving you money in the new year?
by Peter Printer
Has your business ever received a tax cut or break on purchases of electronic equipment? Many small and large businesses enjoy these tax cuts, but most agree that they could be better! Section 179 of the IRS tax code is designed to do just that! Under Section 179 businesses are able to deduct the full price cost of certain qualifying pieces of electronics. This is especially helpful for small businesses that see the damages of pricey equipment eating away at their profits.
Normally, when a business buys these certain pieces of equipment, they receive tax cuts over a period of time, instead of the full amount in a much shorter time. An example would be if your company purchased a piece of equipment for $20,000 and received $5,000 a year over four years. You would still see your $20,000 investment returned to you, eventually, but wouldn’t it be better if you could see that money back sooner? Of course it would.
How can you know if your business qualifies for Section 179? Businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during the 2013 tax year can qualify for Section 179. In the event that the business is unprofitable during 2013, and does not have a taxable income to use the deduction, that business can choose to use the 50% bonus depreciation and carry-forward to a year when the business is actually profitable.
Equipment that qualifies for Section 179 must be purchased between January 1, 2013 and December 31, 2013 and includes:
- Equipment (machines, etc.) purchased for business use
- Tangible personal property used in business
- Business vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
- Computer “Off-the-Shelf” software
- Office furniture
- Office equipment
- Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
- Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes)
For more information on this money-saving deal from the IRS, you can visit Section179.org or www.irs.gov (search for IRS Publication 946 “How to Depreciate Property.”
As always, we here at Midcom are happy to help with your industrial printer and barcode scanner equipment inquiries so find us on Facebook, Twitter, Google+ and LinkedIn or give us a call at (800) 643-2664!