In today's presentation we are going to take a close look to one the biggest deduction available to businesses, The Section 179. So lets get started!

1. Section
179
Deduction 2013
The Ultimate Guide
by FitSmallBusiness.com

2. The
Section 179 deduction

3. The
Section 179 deduction
is one the biggest
deduction available
to businesses.

4. It is often referred to as the
“SUV tax loophole” OR
“Hummer deduction”
for its ability to get a bigger
deduction for these types of vehicles.

5. The “179 deduction”,
refers to Section 179 of the IRS tax code.
This deduction offers
business owners to deduct
up to $500,000 of
qualifying purchases.

6. Think
of the 179 deduction as
accelerated
depreciation.

7. Instead of waiting,
5, 7, 15
years
to slowly deduct your equipment,
material or improvement costs
you can elect to depreciate most,
or all, of it in the current year.

8. To slowly deduct your equipment,
material or improvement costs
you can elect to depreciate most,
or all, of it in the current year.

9. What
Qualifies?

10. Qualifiers for these
deductions:
• Vehicles
• Storage facilities and some types
•
•
of structures.
Machinery
Equipment Livestock

11. In the 2013 tax year,
computer software
bought off the shelf may also be deducted.
The IRS calls such property “tangible”
property, meaning that it is actual property
that exists in a material form.

12. One of the main requirements is that
all the property must be used
in business.
At least 50% of the time, and be
purchased in the current tax year.

13. Vehicles are also
eligible for a substantial deduction.
However, if you use your
car, for personal reasons also,
you may deduct only the
business percentage.

14. If you use your
computer
for personal and business use,
the usage is based on hours.
You would calculate the percentage of
hours you use it for work-related
purposes, and divide by the amount of
time you use it for personal reasons

15. Reasons
to take the
179 Deduction

16. In a year,
when business expenditures are high,
large tax savings can help with
cash flow, lower costs,
and help your business expand.

17. Because you deduct the entire amount of
your purchase in the year you acquired
it, you cannot keep depreciating the
items in.
subsequent
years.

18. A business should
carefully consider:

19. • The future deductions

20. • Expected cash flow

21. • Whether this deduction
would be beneficial.

22. Section 179
Deduction

23. Section 179
Deduction
Limits

24. For 2013 the
deduction
limit
For The Section 179
is $500,000.

25. For 2013 the
deduction
limit
For The Section 179
is $500,000.
Real property is limited to $250,000 of that limit.

26. Additionally
you can deduct part
or all of the cost of equipment.

27. If you bought a saw for
$10,000,
you can deduct the full amount or
part.

28. If you bought a saw for
$10,000,
you can deduct the full amount or
part.
If you used $5,000 as a 179
deduction, the remaining $5,000
could be depreciated.

29. The
dollar limit

30. The
dollar limit
is subject to limits in the following
circumstances:

31. Any 179 property
amount over $2,000,000 is subject to a reduction,
which is reduced dollar for dollar.

32. Qualified Business
Enterprise Zones
Qualify for an increase of $35,000. If
costs exceed $2,000,000 the increase
is half the qualified zone property cost.

33. Sport Utility Vehicles
have a limit of $25,000.

34. Disaster
Assistance property

35. Disaster
Assistance property
is increased by the smaller of
$100,000 or the cost of the
qualified section 179 Disaster
Assistance property placed in
service during the tax year.

36. Filing status
also has an effect on limits.
Married Filing Jointly taxpayers are
treated as one taxpayer in
determining any reduction to the
dollar limit, regardless of who
purchased the property.

37. The
Section 179
deduction
is beneficial for many
small businesses,
and can impact many
purchases and decisions.

38. And Finally...

39. To learn how to
simplify the process of
running your business
visit us at....

40. www.FitsmallBusiness.com
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