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BAASS Insights Technology Blog


Section 179 Deduction Has Been Extended
by: BAASS Editor | April 09, 2013

If you are currently lease-financing any of your equipment or software, you will be happy to know that the Section 179 Deduction has been extended in the Fiscal Cliff Bill. According to the bill, you can write off the entire amount of your equipment or software costs up to $500,000. In addition to the raised deduction limit, there have been a few additional changes to the Section 179 Deduction for 2013. Take a look at the following changes to see how your company can benefit from the recent extension:

  • The deduction limit for 2013 is $500,000.
  • The deduction limit for 2012 was $139,000; however, according to the Fiscal Cliff Bill, the 2012 deduction has been raised to $500,000 as well. This means that you can apply any qualifying purchases made in 2012 to the higher deduction limit.
  • The limit on capital expenses for 2013 is now $2,000,000.
  • The bonus depreciation for 2013 is 50%.

 These limits (with the exception of the raised 2012 deduction limit) are for tax year 2013 only and are available for most new and used capital equipment (including software).

Contact your BAASS account manager at 1-866-260-5302  to learn more about how the Fiscal Cliff Bill will affect your company for the upcoming tax year.

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