Businesses Have 9 Days to Take Advantage of $500,000 Section 179 Deduction

VIRGINIA BEACH, VA--(Marketwired - Dec 22, 2014) - Liberty Tax, Inc. (NASDAQ: TAX)

The countdown on the half-million dollar Section 179 tax deduction has begun, and business owners would be wise to take heed, says Liberty Tax Service. Businesses have just 9 days left to purchase and put into service big-ticket items, such as equipment and computers, then claim a deduction up to $500,000 on their 2014 taxes.

The Section 179 deduction was supposed to drop to $25,000 for 2014, but late approval of the Tax Increase Prevention Act of 2014 restored the deduction limit to $500,000. When Congress reconvenes in 2015, members will have to decide whether the deduction will stay at that amount or change.

"There is no telling how Congress will respond," said Liberty CEO John T. Hewitt. "That is why it is important and necessary for businesses to seize this opportunity now."

The Section 179 deduction is used by businesses when they purchase equipment and put it into service in a given tax year. The Section 179 deduction is available for up to $2 million in equipment purchases. Along with the larger Section 179 deduction, the tax extenders bill also continues the 50% bonus depreciation allowance for 2014. By using the two, business owners can more quickly recoup some of their expenses.

Some deductible items business owners could consider purchasing and putting into service, include: company vehicles, photocopy machines, computers and software, office furniture, large manufacturing tools and more.

"It just makes practical sense from a tax perspective to make these purchases now and not wait," Hewitt said. "What business owner doesn't want to reduce his or her tax liability while doing something good for the business?"

About Liberty Tax, Inc.
Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc. (NASDAQ: TAX) is the parent company of Liberty Tax Service. Liberty Tax is one of the fastest-growing tax preparation franchises and has prepared almost 18 million individual income tax returns in more than 4,400 offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of approximately 35,000 seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.