Tax Tip: Small Business Expensing Enhanced

Small Business expensing was enhanced early this calendar year when The American Taxpayer Relief Act of 2012 increased the amount available as a first-year deduction for the purchase of new or used business equipment to $500,000.  This new limit applies to both 2013 and retroactively to 2012.  The investment limit of total purchases is $2,000,000.  The new law also extends 50% bonus depreciation through 2013.

For more details,  see our January 22, 2013 post:  Section 179 Changes: Deductions for Equipment and Software

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