Thursday, November 15, 2012

Important tax planning implications updated for the 2012 tax year!!


Both the 'Tax Relief Act of 2010' as well as the 'Jobs Act of 2010' that passed in late 2010 affected Section 179 in a positive way for this 2012 tax year. 
Following are the highlights for the 2012 tax year:
2012 Deduction Limit = $139,000


Section 179 Deduction limit after adjustment for inflation has increased to $139,000 (maximum allowance would have been only $25,000 prior to the new legislation).

2012 Limit on Capital Purchases = $560,000


Section 179 Threshold for total of equipment & software that can be purchased has increased to $560,000 (threshold would have been only $200,000 prior to the new legislation).

2012 Bonus Depreciation = 50%

The new law allows 50% “Bonus Depreciation” on qualified assets placed in service during 2012


Please Note:
Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.
Bonus Depreciation can be taken on new equipment only (no used equipment, no software)


Get all of your Section 179 Deduction Questions Answered here or contact ProSoft directly:
www.section179.org

Office - (888) 263-0393