Section 179 Tax Deduction Limits for year 2014:
The Section 179 Deduction is currently $25,000 for 2014, with a “total equipment purchased” threshold of $200,000. This means businesses can deduct the full cost of equipment from their 2014 taxes, up to $25,000. Small and Medium Businesses Benefit the most .
Section 179 is a true small to medium business tax deduction. If a business buys more than $25,000 worth of equipment, the deduction is unaffected until $200,000 is reached (where it then decreases on a dollar for dollar basis.) This means, at current limits, if a business buys $225,000 worth of equipment, their Section 179 deduction is reduced to zero.
In prior years, Section 179 has almost always been raised (even retroactively) into the hundreds of thousands of dollars. While there are no guarantees, most experts feel this is inevitable for 2014, even if retroactive.
Section 179 Deduction Limits for 2014:
Deduction Limit $25,000
Limit on Capital Purchases $200,000
Bonus Depreciation N/A