SMB Manufacturers Save up to $21K on Manufacturing Software with Section 179 manufacturing software Tax Deductions – the title says it all. It’s true that this year’s Section 179 deductions are not as significant as last years, but you can still save thousands of dollars on any ERP software or equipment that you’ve purchased in 2014. Read what Crest Capital has to say about this year’s deductions:
Section 179 Manufacturing Software Tax Deductions
The Section 179 manufacturing software tax deductions are currently $25,000 for 2014, with a “total equipment purchased” threshold of $200,000. This means manufacturers can deduct the full cost of ERP manufacturing software or equipment from their 2014 taxes, up to $25,000. Yes, it’s a good deal.
Small and Medium Manufacturers Benefit the Most
Section 179 is a true small to medium business tax deduction. If a business buys more than $25,000 worth of ERP manufacturing software or equipment, the deduction is unaffected until $200,000 is reached (where it then decreases on a dollar for dollar basis.) This means, at current limits, if a business buys $225,000 worth of equipment, their Section 179 deduction is reduced to zero. But until that point? Enjoy.
About the limits
In prior years, Section 179 has almost always been raised (even retroactively) into the hundreds of thousands of dollars. While there are no guarantees, most experts feel this is inevitable for 2014, even if retroactive.
In order to qualify for the Section 179 Deduction, the equipment must be purchased, financed or leased and put into service by December 31, 2014.
Using a $25,000 equipment cost for a sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased. In the example, $25,000 in equipment purchased has a true cost of $16,250. That’s $8,750 added to your bottom line. Would you like an extra “almost 9 grand” this year?
Visit the government site (www.section179.org) and plug in your own numbers into the Section 179 Calculator to discover how much money you could be saving your business this year.