End of Year Action Required: Section 179 IRS Tax Code Allows Full Deduction of 2012 Purchases

Posted on Nov 14, 2012 in Jeff Nolte's Blog

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the 2012 tax year. That means that if you purchase qualifying equipment, you can deduct the full cost of that equipment from your gross income.

Almost all types of business equipment qualify for the Section 179 deduction, including business phone systems and software solutions. It’s an incentive created by the federal government to encourage companies to invest in their business.

Learn more about Section 179

All businesses that purchase, finance and/or lease less than $560,000 in new or used business equipment during the 2012 tax year should qualify for the Section 179 Deduction. The write-off cap is $139,000, and qualifying equipment must be placed into service between January 1, 2012 and December 31, 2012.

Large businesses that exceed the threshold of $560,000 in capital expenditures can take a Bonus Depreciation of 50% on the amount exceeding the $139,000 write-off limit.

Don’t let this opportunity pass you by… Talk to your accountant for tax advice. Talk to Chesapeake about technology: (800) 787-4848 or email jnolte@chesapeaketelephone.com.