Tuesday, March 25, 2014
Depleted Depreciation affects you....Section 179 Deduction
I am sitting here this morning listening to our technicians re-manufacturing Blanchard Grinders out in our facility. These are awesome built machines that will ship to small mom and pop shops as well as fortune 500+ shops all over the country and abroad. I thought it might be a good day to stand on a soap box and bring attention to a huge change in the depreciation tax code for 2014 for all of us machinery folks and manufacturers alike.
At the end of the 2013, the Section 179 Deduction that allowed you to write off up to $500,000 of new and used Capital Equipment purchases plus 50% of anything over $500,000 in the first year reverted back menial $25,000. The MDNA (Machinery Dealers National Organization) upon questioning some of our government officials have been told that this is not a priority right now, instead their focus is JOBS? I agree that while making new opportunities for jobs is very important, so are the machines and equipment used to do those jobs. Lets face it, with the advent of new and changing technology in the machining industry the equipment that you are purchasing this year for your facilities will be outdated by technology in two or three years, yet under the current depreciation code you will be depreciating it for the next 7 -10 years.
In my opinion, it is up to all of us to contact our senators and congressman and let them know how important it is to review Section 179 deduction limit. Capital Equipment purchases mean new jobs as well as allowing manufacturers to be competitive in the marketplace.
Note: These are my opinions only, feel free to comment, dislike of file in the can. But if you want to contact me send me an e-mail.
Thanks for listening,
Craig L. Ward-C.E.A.