Mid-Year Tax Tip

Pile on equipment purchases. Under Section 179 of the tax code, you can currently deduct up to $500,000 of qualified business property placed in service this year (subject to a phaseout threshold of $2 million). These thresholds were extended through 2013 by ATRA. Absent any new legislation, the maximum Section 179 deduction will plunge to $25,000 next year (with a $200,000 phaseout threshold). Tip: ATRA also preserves 50% bonus depreciation for qualified property placed in service before 2014.