Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please Type Topic Into Search Bar

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?

Business Equipment Tax Breaks
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Adam Allan


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" />



Leave a Comment 354 weeks ago

User Photo
Bernice Brightbill
It all depends on your tax bracket and whether you need more deductions NOW to lower your taxes for 2013. The best thing is to use what you need for this year - If you need it at all - wait for next if not!)  but if you do need the deduction buy it now - take half now and/or amortize the item over it's life span
Leave a Comment 354 weeks ago


Meet Leading Tax Advisors

User Photo John Stancil

Professor

Lakeland

User Photo Peter J. Scalise

Federal Tax Credits & Incentives Practice Leader

New York, NY

User Photo John Dundon, II EA

Tax Director

Denver, CO

User Photo William Rogers, CFP, MBA, EA

CEO/Certified Financial Advisor

Rancho Santa Fe, CA

User Photo Monika Miles

President

San Jose, CA

User Photo Blake Christian

Tax Partner

Long Beach/ Park City, CA

User Photo John Richardson

Lawyer

Toronto, Canada

 

View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

INCREASE KNOWLEDGE WITH EVERY ISSUE OF TAXCONNECTIONS

 

Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today