The Tax Extenders Bill that was passed by the House on December 3rd, was voted on and passed by the Senate on December 16th retroactively extending the Section 179 deduction limits through 12/31/2014. It goes next to President Obama, who is expected to approve it. Importantly, it is only this 2014 tax year that will be covered by this measure, therefore it is a good business decision for many to buy/finance equipment immediately to make the December 31st cutoff for the write off provisions.
If the President signs off on the Section 179 extension, business owners will be able to deduct up to $500,000 worth of qualifying equipment and property that was bought (or financed) and put into business use during 2014. It also reinstates the 50% Bonus Depreciation. It is important to note that the Section 179 extension, if approved by the President, expires on December 31, 2014.
Equipment That Qualifies
There are many types of equipment and property that qualify for the Section 179 tax deduction. These include business vehicles, office equipment, office furniture, computers, printers, software, machinery and manufacturing equipment. We recommend that you consult with your accountant to find out if the equipment you want is eligible for the Section 179 deduction.
Unfortunately, time is short to take advantage of this. It would be good business practice, if you have not already put certain equipment into service yet and would like to, to identify needs, do your homework and be prepared to transact your purchase if/when the President signs it.