We are thinking about buying a piece of expensive equipment we need for our business. Should we buy it before December 31, 2013 or after January 1, 2014?
Tax Professional Answers
It depends on several items. 1- "Expensive"
should be clarified. Currently, on 12/31/13 Sec 179 limits will be reduced from
$500,000 to $25,000 and bonus depreciation will go to zero (among other items
related to this). 2- You should first determine if you can afford the
"expensive" piece of equipment. Buying equipment that is expensive
before analyzing the cost/benefit may be far worse that simply getting a tax
deduction in the current year. If you are not around to pay for it next year,
is it really a benefit then now? Finally 3- How much other equipment have you
purchased in the current year already (as limits apply and may therefor reduce
some benefits of other purchases)?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />