Just 11 days remain until the Section 179 deadline! Have you thought about what your staffing firm may need in 2015? If you’re in the process of evaluating a new software solution, consider the financial impact of making that decision before the end of the year.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying software and other equipment purchased during the tax year. The deduction is an incentive certified by the government to encourage businesses to buy equipment and invest in themselves.
Here are a few quick facts Section179.org for the Tax Year 2014:
2014 Deduction Limit = $500,000
This is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2014, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2014.
2014 Limit on equipment purchases = $2,000,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.
Bonus Depreciation: 50%
This is taken after the $2million Section 179 cap is reached. Note: Bonus Depreciation is available for new equipment only.
The above is an overall, “simplified” view of the Section 179 Deduction for 2014. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, read the entire website carefully.