Passed in January 2013, the American Taxpayer Relief Act of 2012 extended the Tax Relief Act of 2010, thereby reinstating the 50 percent depreciation bonus through 2013.
The Act also reinstated the Sec. 179 expensing levels to $500,000 through 2013 with a graduated phase-out once qualified capital expenditures exceed $2 million in the 2013 tax year. This legislation can provide potential tax savings for your business.
Basically, if a buyer spends up to $500,000 on qualifying equipment and installs it by the end of this calendar year, they can write off $500,000. Then you get 50 percent bonus depreciation on anything over that $500k up to $2 million.
By lowering your taxable income, the depreciation bonus and Sec. 179 can dramatically cut your 2013 tax bill, freeing up cash in the short term.
You can still act to take advantage of these tax savings. If you are considering a digital billboard purchase and installation before the end of this year, this white paper can help you understand how the decision to invest now can yield benefits for your business.
To access Watchfire’s white paper on this subject, click here.