Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Sec. 179 is still with us…but with a much lower maximum

Posted by taxguru on April 3, 2014

Q: 

Subject: Section 179

Hi Kerry

I saw your blog online and wanted to know if you had heard whether 179 was being extended or renewed for 2014.  I am looking for information on this and thought I would contact you since I saw your email. Thanks for the great blog!

A:

Section 179 has been around for a very long time and there has never been any serious talk about eliminating it entirely or allow it to completely expire.

What does change, and what you are most likely referring to, is the maximum amount of the Section 179 deduction. As you can see on the chart on my website, this has had dramatic changes over the years.

One of the biggest changes does happen to be from 2013, with a maximum deduction of $500,000 to 2014, where it dropped to just $25,000. Unless our rulers in DC make changes to this, that $25,000 will only increase based on inflation for future years.

I hope this info helps.

Kerry Kerstetter

Follow-Up:

So companies can only take a max deduction of 25,000 on new business equip purchases? Wow that is a drop! Thank you so very much for responding. I really appreciate it.

My reply:

Not to get too political about this; but the maximum Section 179 was bumped up so high in order to encourage investments in business equipment as a means of stimulating the economy.  Now that our Supreme Leader has declared that the recession is over, he and his followers in DC see no need for the extra 179 deduction.

Of course, those of us living and working in the real world know all too well that the recession is nowhere near over, but has gotten worse since the 2008 election.  Unfortunately, tax policy is determined by the lies that are floating around DC and not by what is happening in the real world.

Kerry Kerstetter

Final Point:

Don’t worry… I live in Texas… I agree totally with your statement!!!!!! Thanks Kerry for all of your help!!!

 

TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!

 

Sorry, the comment form is closed at this time.

 
%d bloggers like this: