How Small Retail Businesses Can Use Section 179 Tax Break
Today, we’re writing to make sure you’re aware of an awesome tax deduction, available only in 2013 – Section 179.
Section 179 of the IRS tax code lets you deduct the full purchase price of qualifying equipment and/or software purchased or financed (and put into use) during the 2013 tax year. In other words, you may be able to deduct the full amount of your Bindo contract. Woot!
Here’s what you need to know about the Section 179 tax deduction:
- Section 179 is a tax code created to help small businesses. For 2013, businesses are allowed to deduct the full amount of the purchase price for qualifying equipment and/or software (up to certain limits.)
- Section 179 is for general business equipment and “off-the-shelf software.” If you use it in your business, it probably qualifies. Check this list of qualifying Section 179 equipment to see what, if any, of your equipment and/or software is eligible.
- Section 179 can greatly help your bottom line. Even if you lease or finance your equipment and/or software, you can still deduct the full amount this year without having to spend the entire amount, which means the amount you save in taxes could actually exceed your payments.
Mo’ money for you!
Section 179 is easy to use, but you must elect to take the Section 179 deduction; it’s not automatic. Complete and attach to your tax return Part 1 of IRS form 4562.
There’s even a calculator to estimate how much money can you save.
Note that this tax deduction only applies to purchases made and put into service before December 31, 2013 and keep in mind that Bindo is not a tax advisor. Be sure to consult with your tax advisor about eligibility for the Section 179 Deduction and learn how to make it work for you!
Have you gotten the most of this tax break? Let us know in the comments!