As we approach the end of the 2013 calendar year, many companies begin looking at their current equipment situation to determine if a new or used piece of equipment is needed. Fortunately for these companies, the Section 179 Deduction for 2013 exists.
What is it?
The Section 179 Deduction is a 154 page bill better known as the “Fiscal Crisis Bill”. To read all 154 pages click here. To summarize, the Fiscal Crisis Bill provides three things:
• 2013 Deduction Limit = $500,000 (2012’s old limit was $125,000 deduction)
• 2013 Limit on Capital Purchases = $2,000,000
• 2013 Bonus Depreciation = 50%
Important things to note:
According to section179.org there are three important things to note about this bill:
• Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.
• Bonus Depreciation can be taken on new equipment only (no used equipment, no software)
• When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in the given tax year.
So, with a $500,000 deduction and a Bonus Depreciation of 50% on new equipment placed in use through December 31st, 2013, that makes 2013 the best time to invest in new equipment. And best of all, packaging equipment distributed by R.V. Evans Company qualifies for tax incentives! Unfortunately this deduction only lasts through December 31st, 2013.
As the end of the calendar year approaches, be sure to take time to schedule a review of your facilities. Feel free to contact us for a free Site Needs Analysis and let us help you determine if new or used equipment can benefit your packaging process.
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