Are last-minute fixed asset tax breaks worth it?
December 19, 2011
The 100 percent bonus depreciation
write-off and Section 179 allowances both expire at the end of this month, and many company owners are wondering whether it's worth making last-minute fixed asset
purchases to take advantage of the deductions while they still can.
According to accountant Jeremy Thompson of the Wayzata, Minnesota-based firm Copeland Buhl, it depends on the business owner's individual circumstances, Finance & Commerce reports.
"It probably isn't worth a business owner's time to itemize equipment purchases if there isn't much owed taxes to deduct from anyway," the news source notes.
Thomas adds that any fixed assets
should be bought because the equipment is actually required by the company as part of its revenue-earning efforts, rather than just to win the tax reduction.
Time is running short for those preparing to add to their fixed asset registers before December 31. It's important to remember that unless the item can be put into use by the deadline, it won't qualify for the tax break.