For those small business owners that need to purchase equipment here are the details of the tax law passed earlier this year.
The law extended the $250,000 limit for the first-year
expensing of new or used equipment purchased for use in
your business. This deduction is gradually phased out
once you purchase more than $800,000 of equipment in
In addition, brand new equipment, software, and
qualified leasehold improvements can qualify for 50%
bonus depreciation if placed in service by the end of
The two benefits can be combined on the same purchase.
For example, you can use the expensing option on a
piece of equipment and apply bonus depreciation to the
remaining cost if the property qualifies.
Be sure to speak to your tax advisor to ensure your property qualifies.
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