Clark Heintz Tools & Equipment LLC encourages you to strike while the iron is hot! With the Section 179 Deduction, Tax breaks are offered for equipment purchased for professional use. Buy before year end (Dec. 31. 2011) and get your tax break! Nov 3, 2011 Important 4th quarter tax planning implications. Both the ‘Tax Relief Act of 2010' as well as the ‘Jobs Act of 2010' that passed in late 2010 affected Section 179 in a positive way for this 2011 tax year. The newest changes are as follows:
The Section 179 Deduction limit increased to $500,000. The total amount of equipment that can be purchased increased to $2 million. This includes most new and used capital equipment, and also includes certain software.
“Bonus Depreciation” increased to 100% on qualified assets. However, this can be taken on new equipment only.
When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2011.
Also, many businesses find Section 179 Qualified Financing to be an attractive option in 2011.
Material Goods that Generally Qualify for the Section 179 Deduction:
Please keep in mind that to qualify for the Section 179 Deduction, the below equipment must be purchased and put into use between January 1, 2011 and December 31, 2011.
-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 Software ( “Off-the-Shelf” Software)
-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).