If you buy, you could qualify – Depreciation breaks offer tax savings for contractors
Abstract: Contractors can celebrate the arrival of 2014 with new equipment or software — and favorable tax treatment. The American Taxpayer Relief Act temporarily extended the currently more beneficial versions of 50% bonus depreciation and Section 179 expensing. This means business owners can write off 50% of the entire price tag for qualified new equipment that’s operational by Jan. 1; and Sec. 179 expensing allows deductions for 100% of the costs (up to $500,000) associated with buying a wide variety of new and used equipment. This article explains the details, while a sidebar discusses how to put idle equipment to profitable use.