Section 179 Deduction and Bonus Depreciation - 2014 Update

In 2014 the section 179 deduction, which allows partial expense of equipment and software purchases in a calendar year, has dropped to

$25,000.00. Prior to 2014, Bonus Depreciation allowed for immediate depreciation of 50% of the cost of equipment. It was allowed to
expire on December 31, 2013. Now the maximum amount of equipment that can be purchased before the deduction begins to be
phased out is $200,000.00 (the deduction will be completely phased out once purchases exceed $225,000).

Off-the-shelf computer software placed in service during the tax year is qualifying property for purposes of the Section 179 Deduction.
This is software available for purchase by the general public, subject to a nonexclusive license and has not been substantially modified

For more information about the Section 179 update, call us at 877-646-3300.