The following information is courtesy of our friends at Intech Funding
NEW! Tax Incentives for manufacturing companies for 2014
$25,000 WRITE-OFF ($1 and $101 buyout leases qualify!)
For 2014 the Federal Section 179 deduction has been restored to its 2001 limit of $25,000 plus an adjustment for inflation. These limits may be adjusted by changes to federal law.
Section 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $25,000 of equipment (Section 179 Property) purchased in 2014 from their taxable income. For companies purchasing (or leasing with a $1 or $101 buyout) up to $200,000 of equipment, this deduction is available in full. It then phases out on a dollar for dollar basis for amounts over $200,000.
In addition to the $25,000 write-off, companies may be eligible to deduct federal depreciation on the adjusted basis of their qualified equipment, state depreciation, local tax incentives and interest expenses. Equipment must be purchased and placed into service on or before December 31, 2014.
Always check with your accountant or financial adviser to verify tax or accounting issues and any tax benefits.
Tax laws are subject to change at any time and their application is highly dependent upon the unique facts and circumstances of any particular taxpayer. The information on this page is offered as general guidance and is not intended as specific legal, tax or accounting advice. These calculations are only estimates and everyone’s tax situation is different.