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Section 179 and Buying asset before the end of 2014.

Currently, the Section 179 expense deduction for purchasing assets in 2014 is limited to $25,000. Many small businesses have used the Section 179 deduction to reduce their tax liabilities before the end of the year. Business owners may ask, what should I do if I need to purchase new equipment, buy it now or wait until January?

Two years ago, Congress extended the Section 179 limits in late December, actually passing the tax bill in January 2013 which was retroactive for all of 2012.

Who knows what will happen in the next five weeks before the end of the year.

If you are contemplating purchasing business assets before the end of the year, I would have everything in place to take delivery and place in service by the end of the year. Hopefully, Congress will take up these expired tax provisions in the next couple of weeks and make it retroactive for 2014. If not, you still get to take the current year regular depreciation deduction.

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