IRS Code Section 179 write-offs: Your small business can take a first-year deduction of up to $500,000 of the cost of qualified property placed in service during 2013 and retroactively to January 1, 2012. Qualifying property is most non-real estate related property. Check with your tax advisor for a complete list. The Section 179 deduction is phased out once you buy more than $2 million of equipment during the year.
Bonus depreciation: In addition to other depreciation deductions, a business can claim a 50 percent bonus depreciation for qualified new (not used) property placed in service for 2012 and 2013. The definition of “qualified property” includes property with a cost recovery period of 20 years or less, qualified leasehold improvements, certain computer software, and water utility property.
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