Veteran broadcast equipment salesman John Lackness shared a thought with his U.S. customers recently and thought I might want to pass it along to you. He’s VP of sales for the Americas for Tieline.
“The end of the year is coming up quick,” says John (whom you’ve no doubt met if you spend time at the spring NAB Show or any of numerous local conferences). “And we all know that stations like deductions and saving money. So they should pay attention to this.”
For tax year 2013, under Section 179 of the IRS Tax Code, businesses can deduct the full purchase price of financed or leased equipment in the current tax year. The maximum deduction for 2013 is $500,000.
But, John notes, that deduction will be reduced significantly in 2014, when the maximum will be only $25,000.
To qualify for the current limited deduction, he says, equipment must be purchased or financed and put into use before Dec. 31, 2013.
So John said stations with any plans to purchase gear soon should consider the timing, given this rule change. He also notes the phrase “put into use” in the guidelines; and he recommends ordering early to avoid possible impact of the holidays and company closures.
Read more about the change in deduction here. John also shares an infographic with related details.
As always, consult your tax advisor to understand specific implications for your business and to confirm that you qualify.