finance new machinery

Code Sec. 179  Small Business Expensing - 2013

The American Taxpayer Relief Act extends through 2013 enhanced Code Sec. 179 small business expensing. The Code Sec. 179 dollar limit for tax years 2012 and 2013 is $500,000 with a $2 million investment limit. The rule allowing off the shelf computer software is also extended.

Example:
Purchase a $200,000 machine
$200,000 Sec. 179 expense
$75,000 Potential income tax savings (based on a 35% tax bracket)
Section 179 expensing may be used for New and used equipment