You may benefit from Section 179 Deduction on Aesthetic Laser Equipment
Tax Planning Alert: Section 179
You may be able to write off a substantial portion of your healthcare purchases in 2012.
The Small Business Jobs and Credit Act of 2010 have increased the maximum first-year deduction under Code Section 179 for equipment purchased during the 2012 tax year. Code Section 179 was enacted to encourage small business owners to invest in equipment by allowing them to deduct a substantial amount of the asset's value in the first year. If you are a taxpayer who owns equipment for tax purposes, you may now be able to deduct up to $139,000 of the value of the equipment you acquire during the first year. In addition, the bill also extended the "50% bonus depreciation" to tax year 2012 (it was rescinded earlier this year, but has been restored. Standard first-year MACRS deduction will apply to the remaining amount. Eligible assets include machinery, equipment, furniture, fixtures and off-the–shelf software.
By using the section 179 deduction you can lower your tax payments, freeing up cash for other business needs.
If you acquire more than $560,000 of assets during the tax year, your Section 179 deduction decreases by $1 for each additional dollar you spend on eligible assets.
To take advantage of the section 179 deduction, you should be a taxpayer with no AMT or tax loss carry forward. If you are financing your equipment you should choose a loan or finance lease, as these products allow you to keep the depreciation benefits as tax owner.
Consider this example of potential tax savings:
How can you realize tax savings from Section 179?
Contact your accountant or financial advisor today to find out more about the new tax law changes and specific benefits you may receive when acquiring new equipment.