2014 Tax Savings with Capitol Machine and Section 179October 13, 2014
As the owner of an insulation or construction business, we recognize that you have a lot of expenses, which is why applying for tax deductions can be very helpful for your company. Section 179 is one of the most important tax codes we want our customers to be aware of. From now until December 31, 2014, customers can reduce their tax liability if they buy, lease or finance an insulation machine. Here’s what you need to know about Section 179.
What is Section 179?
This tax code allows businesses to deduct equipment they purchase for their business, including Capitol Machine’s insulation blowers and vacuums. Through Section 179, the IRS explains that people “can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service.”
How do you qualify?
To qualify for the Section 179 deduction, your property must meet all the following requirements.
- It must be eligible property.
- It must be acquired for business use.
- It must have been acquired by purchase.
- It must not be property described later under What Property Does Not Qualify .
Capitol Machine blowers and vacuums meet all of these requirements. Machinery and equipment is eligible under Section 179 because it is considered tangible personal property.
What has changed with Section 179?
According to the Section 179 Tax Deduction website, “for the upcoming 2014 tax year, Section 179 has been restored to its original limits of $25,000 plus an adjustment for inflation.” This is a significant decrease from last year’s $500,000 limit, but is still worth taking advantage of. As we approach the end of the year and colder months, now is the best time to buy an insulation machine. Call us today and don’t forget to apply for a Section 179 deduction on your 2014 tax returns.
Did you know about the Section 179 deduction, or are you interested in purchasing Capitol Machine equipment? Reach out to us on social media or contact us! We’d love to hear from you.
— JJ Mays (@CapitolMachine) October 13, 2014