Section 179 FAQsPosted by in Section 179 FAQs
This page covers some of the common questions surrounding Section 179 deductions.
Q: What is Section 179?
A: It is a provision of the tax code allowing for IRS deductions to be made for the full purchase price of financed equipment, so long as it falls within the 2013 deduction limit. Equipment is only covered by the deduction if it is purchased between January 1st and December 31st, 2013.
Q: What are the Section 179 limits for 2013?
A: 2013 Deduction Limit: $500,000
2013 Limit on Capital Purchases: $2,000,000
2013 Bonus Depreciation: 50%
Q: Can I take the deduction for financed equipment, including equipment I have leased?
A: Yes. Financing can also ease the up-front cost for equipment, making it a powerful option.
Q: How do I oobtain a Section 179 deduction?
A: Simply fill out IRS Form 4562. Your tax expert can guide you through the document if you need assistance.