It’s hard to believe, but 2014 is coming to an end fast, which means it’s time for many companies to take a review of their finances for the year and make a last-minute push for whatever big organizational goals they have. If you have been considering purchasing some new equipment for your business, starting the financing process in the latter months of the year could be beneficial to you.

One of those benefits comes from the Section 179 depreciation deduction. This deduction allows taxpayers to deduct certain types of property as expenses rather than forcing the taxpayer to deal with the cost of depreciation.

There are some limits to this deduction. Any deduction filed under Section 179 must be property that is tangible and depreciable, acquired for use “in the active conduct” of business. Common examples include real estate, vehicles, and commercial equipment such as computers or medical equipment and technology.

There is also a dollar limitation on the amount you can claim under Section 179. The maximum single deduction you can take in a year is $ 500,000.

By taking advantage of the benefits of Section 179 in the coming months, you will be able to get the equipment you still need for your business before the end of the year and benefit from tax deductions when you file your taxes in early 2015.

Benefit from payment deferral

Depending on your financing plan, you may also have the option to defer payments until later. This means that in the later months of this year, you could get the equipment you need now and not worry about making payments until the New Year starts.

For this reason, many companies find it extremely beneficial to get the equipment they need at the end of the year, allowing them to start the new year with the equipment they need to achieve their business goals.

Work with a leasing company today for equipment financing assistance

By taking advantage of deferred payment options and Section 179 tax deductions, you can ensure that your equipment will basically pay for itself. Avoid the burden of depreciation by working with our equipment finance specialists in the world of leasing / financing.

With the US Senate Passing the IRS Section 179 Tax Extension Act, the finance / lease deductions are reset to the previous limits of 500K. The limit is also retroactive to 2014, which will help many customers who have chosen to lease or finance their equipment.