Laws & Legislation


02 17 2013

02 17 2013

Section 179 Raises the Maximum Tax Deduction to $500,000 for Equipment Purchases for Small Businesses

Everyone knows the old saying ‘the only thing that’s inevitable is death and taxes.’  Sad to say, it’s a life truth.  And it’s a particularly common theme in the first part of the year as we all get ready to file.  But this year, taxes don’t have to be quite so inevitable.  That’s because of a substantial change that came as a result of all the discussions characterized as ‘the fiscal cliff.’

Small businesses are a vital – some might say – THE vital – part of this country’s economy, and as a result, Congress provided a substantial benefit for those businesses purchasing equipment.  Let me say here, it was not a new benefit, but it turned out to be a significantly enhanced one.

Section 179 in the IRS tax code allows businesses to deduct a certain amount of the cost of equipment that is purchased and installed during the year.  In 2012, for instance, this amount was up to $139,000, and it was scheduled to drop to $25,000 in 2013.  But instead of phasing out this deduction, the new act raises the maximum to $500,000 for equipment purchased and installed by December 31.  What’s more, they made this retroactive to equipment purchased during 2012 for the 2012 tax year.  This could be a substantial savings for the average small business, especially since most equipment purchases are well below these levels.  So, many will be able to deduct the full amount of their equipment purchased this year.  And that means there’s opportunity for a lot more companies to replace, upgrade, or expand this year.

Now it is always a good idea to consult a tax advisor on these issues, because there are some rules and limitations.  But once again, the list of eligible equipment is very long, and as a rule of thumb we could say that it is likely that the equipment used in most businesses is eligible – from software to vehicles.

We talk to hundreds of owners every day about what they need to operate and grow their businesses.  So imagine the delight of being told that the equipment they purchase will end up being less costly than they have planned.  Don’t let the raw cost of equipment stand in the way of an opportunity to grow your business.  In the end, it may turn out to be a lot less expensive than it appeared at first.  Section 179 of the tax code could save your small business up to $500,000 on equipment purchases; don’t delay, contact National Funding today to find out how much your business could save in 2013.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan.  What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number.  We will also ask for your name, address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.