Special Tax Credit to Small Businesses Set to Expire December 31st
|Special Tax Credit to Small Businesses Set to Expire December 31st|
Should I buy now or should I wait until next year? That is a key question as we approach the end of 2012. We have all heard of the pending fiscal cliff and the expiration of the tax cuts at the end of 2012. Repeatedly we’ve been told about the impact the expiration of these tax cuts will have on individuals, but there are also favorable business tax provisions that are set to expire at the end of 2012?
One of the best small business tax deductions for 2012 is Section 179 for qualifying equipment purchases. In fact, it can actually enhance your bottom line. Instead of depreciating your asset over multiple years, Section 179 allows you to write off the entire amount all at once as an expense.
To illustrate this benefit, let’s look at this example. You’ve been thinking about upgrading your company’s antiquated phone system to a new Voice over IP solution. On a $20,000 equipment purchase, you could save $7,000 and reduce your expenditure to $13,000. That is a significant savings! To take advantage of this opportunity, you must complete this transaction by December 31st, before the Section 179 deduction limits return to the pre-2003 levels.
Ask your BEMA engineer today for more details about how your organization can take advantage of these great savings today.