President Barack Obama has signed HR 5771 into law, enabling businesses to take advantage of extended deductions for business equipment purchases. The deadline for applicable purchases under IRS Section 179 is midnight, December 31st, 2014
Temecula, CA December 22nd, 2014 – President Barack Obama signed HB 5771, the Tax Increase Prevention Act of 2014, into law on Friday, December 19th, 2014. The bill provides for a one-year extension for a number of tax laws, including IRS Section 179.
Under Section 179, the maximum deduction a taxpayer could elect to take in a year was $500,000 from 2010 to 2013, and $25,000 for years beginning after 2013. HR 5771 extends the $500,000 benefit for an additional year.
The bill, proposed by Congressman Dave Camp (R-MI), was passed by the house on December 3rd by a 378 – 46 vote. The United States Senate voted 76 -16 to approve the bill on Tuesday, December 16th.
“This is very exciting,” said Krystal Willis, Manager of Sales for GPS Trackit. “Our customers can apply this to the hardware purchases and/or the full value of the hardware price on a lease option.”
According to the website section179.org, “Only this 2014 tax year will be covered by this measure – therefore it is a good business decision for many to buy/finance equipment immediately to make the December 31, 2014 cutoff for the write-off provisions.”
“Definitely consult with a tax professional on Section 179,” Willis said. “They’ll have the latest information on tax laws and how to apply 179 to your tax situation.”
Section 179 for 2014 expires at midnight, December 31st, 2014. To deduct the full price of equipment from your 2014 taxes and take advantage of the higher deduction limits, purchases must be made and put into service by then.
For more information on the content of the bill, go to:
https://www.congress.gov/bill/113th-congress/house-bill/5771
You can also track the bill’s progress at:
