Sec. 179 Set to Expire

The upfront tax deduction for equipment placed into service during 2013 is set to drastically reduce on 12/31/13.  Unless the tax law is changed…which usually happens when popular tax deductions are set to expire – the deduction next year will cap out at $25,000.  Translation…you buy an $85,000 piece of equipment in 2013, we can deduct the entire amount if needed, with a few restrictions.  Next year, with no extension by a law change, such piece will generally have an upfront deduction of only $25,000 with the remainder over basically 5 years..  In a  nutshell….get your large equipment purchases completed by 12/31/13.