2 More EasyTips on How to Reduce 2013 BusinessTaxes

1. Take Advantage of $500,000 Section 179 Deduction for New or Used Assets

For tax years beginning in 2013, the maximum Section 179 deduction for eligible new or used assets other than heavy SUVs is a much larger $500,000.

For instance, the larger $500,000 limit applies to Section 179 deductions for things like new or used machinery and office furniture, computer equipment, and purchased software.

As explained earlier, the up-to-$500,000 Section 179 deduction privilege is also available for new and used heavy long-bed pickups and new or used heavy vans.

Warning: Watch out if your business is expected to have a tax loss for the year (or close) before considering a Section 179 deduction. The reason: You cannot claim a Section 179 write-off that would create or increase an overall business tax loss. Contact your tax adviser if you think this might be an issue for your operation.

2. Benefit from Bonus Depreciation for Other New Assets

Your business can claim 50 percent first-year bonus depreciation for qualifying newequipment and software that is placed in service by December 31, 2013. Used assets do not qualify. For example, this tax break is available for new computer systems, purchased software, machinery and office furniture.

There is no business taxable income limitation on bonus depreciation deductions. That means 50 percent bonus depreciation deductions can be used to create or increase a net operating loss (NOL) for your business's 2013 tax year. You can then carry back the NOL to 2012 and/or 2011 and collect a refund of some or all taxes paid in one or both those years. Contact your tax adviser for details on the interaction between asset additions and NOLs.

Deadline: The December 31 placed-in-service deadline for assets eligible for 50 percent first-year bonus depreciation applies whether your business tax year is based on the calendar year or not. So time is growing short if you want to take advantage.