It’s November and chances are that the last thing on your mind is taxes. After all, April 15th is a long way off and Holiday production season is ramping up now. But that can be a serious business mistake, as the last day for making strategic 2012 tax decisions is pretty much 12/31/12 and considering that its New Year’s Eve, in all likelihood it will be too late. A great example is the Section 179 deduction. Depending on your tax bracket, buying a new sublimation system now could be like getting a 35% discount! How does it work?
In basic terms, rather than depreciating your new system purchase over 5 years, Section 179 of the Tax Code allows you to deduct 100% of any qualified equipment purchases in the tax year in which it was purchased. In other words, if you bought a new printer that cost $1000 (before the end of the year) you could deduct the entire amount on your 2012 taxes, which would then reduce the amount of your taxable income. And it’s not limited to one purchase! So, strategy-wise, if you were seriously considering some new equipment purchases after the first of the year, you might actually be better off to consider closing the deal during the waning months of 2012. Continue reading “Taxes Are Not An Afterthought – 2013 Is Too Late For 2012 Decisions”