Manufacturing Companies: Planning an Equipment Purchase?
July 11, 2014 by Stephanie Potash
One of the best tax breaks available to manufacturers is the Section 179 deduction, which allows you take a current deduction on equipment and business vehicles, rather than depreciating it over many years.
Therefore, advance planning may be necessary to maximize Section 179 deductions at the owner level, which is where the write-offs really count. Your tax adviser can provide all the details.
*Unless Congress acts to renew this at a higher level, this important provision has dropped in 2014 to only $25,000 spending allowance (down from $500,000 in 2013) with an overall threshold of only $200,000 (down from $2,000,000 in 2013).
There are restrictions. Contact us to ensure that you get the maximum equipment deduction allowed in your company’s situation.