Tax Deductions Expiring
The following deductions and bonus depreciation will be expiring this year, and Congress has shown no signs they will be reinstating them soon. These can be substantial for major network and software purchases. It's probably too late this year to use these to push sales. Subscriptions may now become more appealing.
Bonus 50% first-year depreciation: Provides a depreciation deduction equal to 50% of the adjusted basis of qualifying property in the first year the property is placed in service (Sec. 168(k)).
The $500,000 expensing limit and $2,000,000 phaseout threshold and expanded definition of Sec. 179 property: Expensing limit will be reduced to $25,000; phaseout threshold will drop to $200,000; and qualified real property will no longer be eligible for the Sec. 170 deduction (Sec. 179).