Any small business that has a new sign in place before December 31, 2012 can write off 50% of the asset’s cost in 2013. Here a few details:
- 50% of the cost can be deducted if the sign is in place before December 31, 2012. Regular depreciation can be taken on the other 50% of the asset’s cost.
- The company must be profitable. You cannot take Section 179 to lower taxable income below zero.
- Limits to the total amount of equipment that can be purchased apply.
- A tax adviser should be consulted regarding all tax deductions of this nature.
