Jason Cannon December 21, 2014
“With barely more than a week left in 2014, President Barack Obama has signed off on a measure that increases small-business expensing and bonus depreciation … for 2014.
Obama signed Saturday H.R. 5771, which effectively renewed several expired tax provisions to benefit car and truck dealers and their customers. The measure passed both houses of the Senate earlier this month.
Among the benefits was bonus depreciation, which allows car and truck dealers and their customers to expense a larger portion of equipment purchases for 2014. The bill includes an extension of the 50 percent bonus depreciation deduction for new business equipment acquired and placed in service in 2014. In addition to these changes, there is an extension of the additional $8,000 in first-year depreciation for certain business vehicles purchased in 2014.
The bill contains a retroactive increase of the limit on business equipment eligible under Section 179 small business expensing to $500,000 for eligible new and used equipment purchased in 2014. Without this bill, the maximum eligible for Section 179 expensing in 2014 would have been $25,000.
Dealers and their customers must act quickly to take advantage of these tax benefits, because it expires Dec. 31.
American Truck Dealers (ATD) encourages dealers and their customers to consult their tax advisors to determine the exact amount of their potential tax savings, which depends on their own particular tax situation and the provisions described above.”
This is great news if you have purchased or are in the market to purchase a new or used truck or trailer before the end of the year.