cancel
Showing results for 
Search instead for 
Did you mean: 
cowfarmer
Senior Contributor

Deduction for new paint.

Is the deduction for new equipment still in place, Hope so I want people to spend cash on equipment, less cash in hand for me to compete with. LOL

0 Kudos
11 Replies
ncil
Veteran Contributor

Re: Deduction for new paint.

Haven't heard yet on Sec. 179

But given I was planning on not getting any direct payment and now looks like house and senate  passed?

I'd bet yes, its "good " for the economy and it looks like wind farm credit and diesel from beans passed.

Best wait to hear for sure if you plan on using, but so far the "fiscal cliff" looks like business as usual.

Holy Cow - direct payment , thought that was done for sure - politics?????

We live in interesting times for sure.

steeringwheelholder
Senior Contributor

Re: Deduction for new paint.

Yes we get direct welfare for 2013. And section 179 reverts to $500,000 again. Plus 50% bonus. Spend away my friend!
0 Kudos
clayton58
Veteran Advisor

Re: Deduction for new paint.

Its not called welfare, Its called "economic stimulus", or "job creation".  Course in some circles its called other things...

0 Kudos
Red Steele
Veteran Advisor

Re: Deduction for new paint.

I think we are living in the Twilight Zone.

 

Someone please explain to me how passing a $500,000 retroactive section 179 deduction for all of 2012, after the year is already over, stimulates spending.

 

I wonder how much Joe Biden and Mitch McCOnnel actually had been drinking when they hammered out that new years eve deal.

Shaggy98
Senior Advisor

Re: Deduction for new paint.

Better get going on my shop.  2013 might be the year to pull it off.  Love that section 179.

0 Kudos
steeringwheelholder
Senior Contributor

Re: Deduction for new paint.

Shaggy, I don't think section 179 can be used on a shop. Not totally sure though. You can use bonus depreciation though. We need an expert, because a heated shop is also on my want list.
0 Kudos
Shaggy98
Senior Advisor

Re: Deduction for new paint.

I sure hope your wrong SWH.  I will call my CPA when I've got a minute and pick his brain.  I was sure I asked him a few months ago and he said it would qualify if it were placed into service by 12/31 of the same year applying for the deduction.  I might have misunderstood him though.

0 Kudos
Faust100F
Advisor

Re: Deduction for new paint.

Shaggy, you are right.  Equipment must be place in service by 12/31 last year to get the 179 deductions.  I am not familiar with what has been extended under the tax law extension I thought it was limited to tax rates and the estate tax extension.

 

 When I attended a tax course in Grand Island in late December last year (about three weeks ago), the limitation for 179 for 2013 was limited to $39,500 and bonus depreciation was dead. (maybe I misunderstood the instructor and my text book was a misprint).   Nice to know people on here are up to snuff on the subject.  Because it will be great if the old rules still apply.  John

0 Kudos
Shaggy98
Senior Advisor

Re: Deduction for new paint.

I was under the assumption section 179 was raised to $500,000 in 2013.

0 Kudos