New Section 179 Depreciation Rules: Buy or lease new computing equipment

Should your business invest in new computers and networking equipment? Buy or lease? New IRS rules for business deductions make this an important issue for many businesses.

In 2010, new laws were enacted that extend and enhance tax incentives to stimulate growth and employment through 2012. Changes to Section 179 deductions and bonus depreciation make it particularly favorable for most companies to acquire equipment and software needed today.

Here are the highlights:

Sec. 179 Deduction Limit – $139,000 in 2012 on new and used equipment and new software

Sec. 179 Deduction Threshold – $560,000 is the maximum amount that can be spent on equipment before the section 179 deduction available begins to be reduced.

Bonus Depreciation – 50% (usually taken after the $139k deduction limit is reached). This applies only to new equipment and can be taken when equipment purchases exceed $139,000.

section 179 rules, deduction, bonus depreciation

By financing an equipment purchase, businesses may acquire and write off up to $139,000 worth of equipment without spending $139,000 during that first year. That is because the $139,000 purchase is being financed through monthly payments.

Be sure to consult a tax advisor to confirm how to use financing to best take advantage of this very generous incentive.

Contact Clare Computer Solutions, based in San Ramon, today via reply email or call 800-339-0690, to learn more about your computing equipment finance options. The time to lease is now, and we can help you!