Miyachi America Corporation offers tax write-off for customer of capital equipment
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of equipment of up to $500,000 for tax years beginning in 2013. Bonus Depreciation allows a fifty percent (50%) deduction on new equipment that exceeds the Section 179 deduction limitation. Customers can take advantage of the Section 179 and Bonus Depreciation deductions with purchases that are placed “in service” during tax years that begin in 2013 and by December 31, 2013, respectively.
The goal of Section 179 Deduction and Bonus Depreciation is to stimulate the U.S. economy by encouraging businesses to buy tangible property like machinery and equipment. Bonus Depreciation is part of the Economic Stimulus Act of 2008 signed by President Bush and subsequently extended through the American Recovery and Reinvestment Act of 2009 by President Obama. The Section 179 limits for the year 2013 were increased through the American Taxpayer Relief Act. The Section 179 Deduction is scheduled to decrease to $25,000 for tax years beginning in 2014 and Bonus Depreciation will no longer be available starting January 1, 2014. Please consult your tax advisor to determine if you qualify to take advantage of these incentives.
