As any tax-savvy small business owner knows, the end of the year represents a great opportunity to book business expenses to deduct them from your taxes.
And the good news is this – Congress has offered a helping hand by extending a tax break that allows businesses to keep writing off up to 100 percent of equipment purchases up to $500,000 per year.
The extension has only been made for one month but it means that the $500,000 number will apply to the 2014 tax year – which is great news for business owners looking to invest in growth. Many have been nervous about making large equipment purchases this year because of the Section 179 expensing limit being in limbo, but you now have a clear path forward.
Please note, of course, that I am not a qualified accountant and you should 100%, definitely seek the advice and guidance of qualified tax-planning professionals but I’d argue that this merits investigation.
If you’d been considering investing in a new counter, or new equipment or technology and had been concerned about price, especially for large expensive equipment like fridges, coffee roasters, espresso machines – or even surprisingly affordable equipment like POS Systems (ahem..) – you potentially have about 15 days to book those expenses.
The fact that this tax break had been due to expire – and that a decision has taken this long to come – has left some small business owners with a problem planning for big financial outlays, so it’s great to have this clarity. It would also be great to get clarity for next year and the year after that, so let’s hope Congress can come together and pass a bill that allows local business owners a bit more security and predictability with regards to their expenses.