Timing Purchases To Be Expensed
As long as you start using your newly purchased business equipment before the
end of the tax year, you get the entire expensing
deduction for that year, whether you started using the equipment in January
or on December 31st. The amount that can be expensed depends upon the
date the qualifying property is placed in service, not when it's purchased or
If, towards the end of your tax year, you're thinking about
purchasing equipment that you can expense, you may do well to
complete the purchase and start using the property before the
end of the year if you can benefit from deducting the property's
cost on your current year's tax return.
However, if you expect your taxable income to be much higher
in the following year, you may want to hold off on the new
equipment until the beginning of the next tax year.