The 2013 American Taxpayer Relief Act (ATRA) allows business owners to deduct 100 percent of their investment costs up to $500,000 on next year's tax return, so you can use your capital in other areas of your business. The act also allows 50% depreciation bonus on purchases greater than $500,000.
To help you with your equipment acquisition decisions, you can use this calculator to plug in the cost of new equipment and find out immediately how much you can deduct.
- Section 179 deduction cap: $500,000
- In 2013, equipment purchases greater than $500,000 is eligible for a 50% depreciation bonus.
Please consult your tax advisor for application to your specific income calculation.