Fiscal Cliff Deal Preserves $500,000 Asset Write-Off

Jeffries' analyst Stephen Volkmann, in a recent note to clients, wrote that under the new fiscal- cliff legislation, companies in 2013 are now allowed to write off as much as $500,000 in new asset purchases. The large amount comes as a surprise to many as the limit was expected to be reduced by $25,000 with the expiry of the Bush era tax cuts.

"Equipment purchasers will continue to be able to use the purchase of equipment as an offset to their overall tax burden," Volkmann wrote. "The result will be a continuation of the elevated prices for agriculture and construction used equipment."

 

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