In
recent years, businesses could expense up to $500,000 of equipment purchases in
the year of purchase, with a $2,000,000 annual purchase limit. In addition,
bonus depreciation was allowed for new equipment purchases.
Because
Congress did not extend these provisions for 2014, businesses can now only
expense $25,000 of new or used equipment purchases. The deduction is reduced
dollar-for-dollar when total asset purchases for 2014 exceed $200,000. Also,
the 50% bonus depreciation that applied in 2013 is no longer available.
Congress
may extend these provisions, or they may not. Check with us for the latest when
you're making equipment purchasing decisions this year.
