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Tuesday, May 8, 2012

Get on board with Razor Signs ~ Section 179



Both the 'Tax Relief Act of 2010" as well as the "Jobs Act of 2010' that passed in late 2010 affected the Section 179 in a positive way for this 2012 tax year.  The following are the highlights for the 2012 tax year:

2012 Deduction Limit = $139,000
Section 179 Deduction limit after adjustment for inflation has increased to $139,000 (maximum allowance would have been only $25,000 prior to the new legislation).

2012 Limit on Capital Purchases = $560,000
Section 179 Threshold for total of equipment & software that can be purchased has increased to $560,000 (threshold would have been only $200,000 prior to the new legislation).

2012 Bonus Depreciation = 50%
The new law allows 50% "Bonus Depreciation" on qualified assists placed in service during 2012.

Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.

Bonus Depreciation can be taken on new equipment only (no used equipment, no software) including signs.

Please click here to use the 2012 Section 179 Calculator!


Tangible personal property.  Tangible personal property is any tangible property that is not real property.  It includes the following property.

  • Machinery and equipment.
  • Property contained in or attached to a building (other than structural components), such as refrigerators, grocery store counters, office equipment, printing presses, testing equipment and signs.

To learn more about the Section 179 you can go to the IRS website here.















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