Inventory Planning Blog

Inventory Planning - Section 179 Tax Benefits for 2012/2013 NEW!

Posted on Mon, Apr 01,2013@09:00 AM

Section 179 at a glance - New for 2013 & 2012

•    2013 and 2012 Deduction Limit = $500,000
This is good on new and used equipment, as well as off-the-shelf software.

•    2013 and 2012 Limit on equipment purchases = $2,000,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced.

•    Bonus Depreciation = 50%
This is taken after the $2 million limit in capital equipment purchases is reached. Note: Bonus Depreciation is available for new equipment only. Bonus Depreciation can also be taken by businesses that will have net operating losses in 2013.

The above is an overall, "simplified" view of the Section 179 Deduction for 2013. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully.

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Tags: Inventory Planning, inventory optimization, tax incentives, Valogix