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Did You Have A Successful Year?
Now is a great time to purchase concrete raising equipment to help make your business more profitable in the years to come. The tax year is coming to an end and it is time to start thinking about your tax deductions. Section 179 of the IRS tax code will allow you to deduct from this current tax year. Concrete raising equipment you purchase, leased or finance will be credited to your deduction for the 2013 tax year. It is important to ACT NOW and take advantage of current benefits of the section 179 code. Thinking about your businesses future is important and it is important to do your research. Find every advantage you can acquire to increase your revenue in the years to come. When the code changes you don’t want to have that should of, would of, and could have purchased concrete raising equipment feeling.
Section 179 was designed to help businesses, that’s why almost all “business equipment” purchased and in service until Dec 31, 2013 qualify for the deduction.
Things you should know pertaining to the Section 179 Code:
| The tax deduction will not take effect if you have exceeded purchasing $2,000,000 in equipment in 2013. Section 179 has been modified in 2013 for small and medium size businesses to succeed. The prior rate in previous years was $200,000. |
| The vehicles weight must exceed 6,000 lbs. There are loopholes to get around this for smaller vehicles due to size, passenger quantity and cargo area. |
| The current 2013 deduction limits are $139,000 and the total amount of equipment purchased cannot be over $560,000. This limit may go back to normal in future years so it is important to take advantage of the current rate. |
Your geographical location may have an impact on your deduction rate. An increase may be provided for areas in New York liberty zone, enterprise zone and the gulf coast zone. There is a special page dedicated to see if you’re located in the special section zones.
To participate for the section 179 code you will need to fill out an IRS form 4562 (Click Here). If you need assistance speak with your current tax preparer for more details.
The equipment purchased can be new or used, the important thing is that to be “new to you.” Used equipment does not qualify for Bonus Depreciation.
Your new equipment cannot be used for personal use.
2013 Section 179 Example Calculation
|
Equipment Purchased: |
$50,000 |
|
First Year Right Off: Max: $500,000 |
$0.00 |
|
50% Bonus First Year Deprecation: 20% in each 5 years on remaining amount |
$0.00 |
|
Normal First year depreciation: 20% on each of years on remaining amount |
$15,000 |
|
Total First Year Deduction: $500,000 + $70,000 + $15,000 |
$50,000 |
|
Tax Savings: $590,000 + 36% tax rate |
$17,500 |
|
Equipment Cost after Tax $650,000 less all tax deductions |
$32,500 |
The section 179 tax deduction can have a huge impact on your savings from equipment purchases. The Section 179 deduction calculator can give you an example of your savings when purchasing concrete raising equipment. Please note that the calculator and bonus deprecation calculation is a reflection on the current year and may change after December 31st 2013.
Click Here to learn more about HMI’s financing partners.
Whether you’re looking for Polyurethane concrete raising or mudjacking equipment the Section 179 code will help you save money to help you make more money in the future. Contact HMI at 1-800-626-2464 or info@concreteraisingsystems.com to purchase concrete raising equipment.
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