Get it while you can – the 2013 IRS section 179 deduction for equipment purchase.
In-sourcing, manufacturing sector, manufacturing technology, section 179
At this moment in October 2013, the section 179 tax deduction is doing well for 2013. Even with the fiscal cliff and sequestration in place, the 100% deduction for 2013 can be at least $500,000 for items (including used machinery) purchased and put into service in 2013.
Next is the new bonus deduction of 50% of the value over $500,000 up to $3,500,000. That’s a potential total of $2,000,000 to take off your 2013 taxable income!
Note the requirement that it be put in service this year. This makes used equipment more attractive because, believe it or not, having new equipment delivered and installed in 2013 now is almost impossible due to current lead-times. Generally, used equipment is available in less than 2 weeks.
Important to consider is the fact that section 179 provides a full taxable income deduction in 2013 not phased depreciation over several years.
I don’t need to tell you that anything can happen to section 179 in January when our Washington friends battle it out once again
Lastly – please check with your accountant to be sure nothing has changed since this article was written.