Commercial Funding will be featuring information on Bonus Depreciation, Section 179 and Capital Finance this month. For additional information including dates and times please contact us today. Don’t miss out on your bonus depreciation before time runs out! There is important information you need to know!
What’s the difference between Section 179 and Bonus Depreciation? The most important difference is both new and used equipment qualify for Section 179 Deduction, while Bonus Depreciation covers new equipment only. Bonus Depreciation is useful to very large businesses spending more than $560,000 on new capital equipment in 2012; also businesses with a net loss in 2012 qualify to carry-forward the Bonus Depreciation to a future year. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2012.
Can I lease (or finance) equipment and take the Section 179 Deduction? Absolutely. In fact, this is a very effective strategy, as the deduction you take may actually exceed the total loan or lease payments you make for the year.