Great News for Farmers and Ranchers who are looking to add a utility vehicles to their work fleet. Section 179 of the tax code now extends to the UTV and ATV lines of vehicles. If you get down to the dealer within the next 13 hours, you will be able to take advantage of the deductions as well as bonus depreciation on new equipment.
There is a lot of leagalese in the tax laws that I don't altogether understand, but from what I can deduce is this. Section 179 will allow businesses to deduct the full purchase prive of qualifying equipment purchased or financed by December 31, 2014. You will be able to deduct the Full Purchase Price from your gross income. This is a deduction that is essentially designed to encourage businesses to buy equipment and essentially invest in themselves.
In years past, this was jokingly referred to as the "Hummer Deduction" because heavy vehicles like Humvees and larger SUV's fell into the same classification as the HD trucks that many businesses were using as fleet vehicles. Since that time, the law has been revised the limits on "business vehicles."
The revisions of to the tax law have actually started to benefit the small business instead of rewarding those that sought out the "Hummer Loophole" to buy a nice new SUV.
When a business buys equipment , the business is typically allowed to write the purchase price off in yearly increments. In example, if a business were to buy a $50,000 piece of equipment, they would be made to depreciate it at roughly $10,000/year for 5 years.
NOW, that same business will be able to write off the entire purchase price of that piece of equipment in the same year that they made the purchase.
*Note: This is just my interpretation of what I been able to read on the subject, so if I got any of this wrong, do NOT send the IRS my way as your source. I make no guarantees that this information is true or accurate.
If you are looking for more information on Section 179, check it out here: Section 179 and Bonus Depreciation | Section179.Org
For now, get down to your Arctic Cat Dealer to get on board for this extension on Section 179. Take advantage of the extension before they revise the law!