A Tax Law That Really Does Help!
Have you been considering starting a vending business but are waiting for the right time to buy? Good for you! Starting any business successfully requires a good amount of thorough research and a lot of hard work. Here at U-Turn Vending we have been helping people start businesses for nearly 25 years now. That experience has allowed us to simplify processes for you so you can get your business up and running with out a huge time commitment.
2011 is coming to a close - and so are some generous small business tax benefits:
- Section 179 deduction for 2011 is $500,000. (In 2012, it drops to $125,000. In 2013, it is expected to drop to $25,000.)
- Bonus depreciation allows small businesses to take a deduction for equipment expenses beyond the amount allowed under Section 179. For 2011, the bonus depreciation is 100%.
So from a tax perspective, purchasing equipment this year will be a significant advantage.
If you purchase your vending equipment before the end of 2011 you can deduct the entire purchase price from you gross income. That is basically saying if you made $50,000 this year and you purchase or finance $50,000 of vending equipment you pay no income tax! For most people who have been paying taxes through out the year, that means a GREAT BIG TAX RETURN!!!