Each year, Congress writes legislation to encourage certain activities in the business sectors. National Funding encourages all clients to investigate Section 179 of the IRS tax code. In 2012, the code was enhanced to allow businesses to deduct the entire price of equipment in the same year. Up to $139,000 can be deducted when equipment is leased or purchased and installed in 2012. Tax preparation should include a discussion with the tax advisor to determine if Section 179 applies. Important tax advantages reduce the tax burden and improve cash flow. Businesses are encouraged to make capital purchases for equipment when significant changes are made to the tax code.
Most types of equipment fall within Section 179. Vehicles, software and production equipment are the most common types of equipment that businesses purchase. National Funding knows that proper use of the tax code improves cash flow for business growth ventures. Companies must take advantage of every legal tax incentive, especially when equipment would propel business growth. Equipment leases are included in Section 179. The company would not be required to save large sums of money before replacing old equipment. Business growth can be accelerated with better equipment. A tax advisor can answer specific questions concerning Section 179.
In 2013, the same deduction will be reduced to $25,000. National Funding has worked with many clients throughout 2012 in the quest to acquire new and used equipment through lease agreements. Lease specialists strive to find the best rates from each vendor. Restaurants, trucking companies, construction companies and manufacturers rely on the lowest possible lease terms to acquire the most advanced equipment. Claiming every possible tax deduction ensures that the cash will be available through the coming year. National Funding will continue to make new vendor agreements to provide many equipment choices for every client.