Time is running out to make those final software purchases for 2014 and qualify for the significant tax deduction afforded by Section 179. You only have until December 31st, so make your decision quickly! Section 179 can be very profitable for you, so it is to your benefit to learn as much as possible.
What it is:
Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is easy to use, and gives organizations an incentive to invest in their business by adding software or cap equipment. Taking advantage of the Section 179 Deduction will help your business keep more capital, while also getting needed equipment, vehicles, and software.
What it means for you:
A popular use of the IRS §179 Deduction is for business software. Any "off-the-shelf" computer software that (a) is not custom designed, and (b) is available to the general public is qualified for the Section 179 Deduction in the year that you put the software into service.
The current deduction limit is $25,000 plus an adjustment for inflation. This means businesses can deduct the full cost of qualifying equipment or software from their 2014 taxes, up to $25,000. The equipment or software must be purchased and put into use by midnight, 12/31/2014.
Learn more at www.section179.org
***UPDATE on 12/18/14: The Senate just passed tax extenders for 2014 that include a $500,000 limit for Section 179. So make any purchases in 2014 that you can, as there is no certainty as to what the 2015 amounts will be.