It’s right around the corner and will be here before you know it—the December 31st deadline for year-end tax deductions. The Section 179 deduction is $1 million. Are you ready to squeeze as much benefit from Section 179 as you possibly can?
Section 179 is designed as an incentive for you to invest in your business. For all of the qualifying equipment you buy or lease, you get to deduct the full purchase price from your gross income. If you elect to take Section 179, the full price of your equipment will be taken up front and not written off over time, which saves you the taxes for that current period, versus spreading the cost out over the next five or seven years.
As of this year, the deductions also hold true for financing used equipment, which could enable the deduction to exceed the purchaser’s loan payments in the first year. Yes, you read that right: The amount you save in taxes can actually exceed the payments!
Section179.Org encourages the use of Section 179 Qualified Financing for all business equipment purchases. The obvious advantage to leasing or financing equipment and/or software and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment and/or software, without paying the full amount this year.
Qualifying equipment includes laptops, printers, routers, servers, scanners, phone systems, and even your IT projects. Of course, you should consult with your tax attorney to see how Section 179 may be best used for your business.
So how much can Section 179 save you? Use the handy Section 179 calculator, and you can shop armed with numbers. Section 179's one-million-dollar limit is big but that doesn't mean it can't benefit smaller purchases as well. If your only purchase this year is a $3000 multifunction printer, that's an immediate $3000 deduction.
What are you waiting for? Get that equipment bought and installed by midnight 12/31, and you're good! Call 864.335.0650 today to learn more about our year end promotion.