Thinking about new equipment? Then think Section 179, the government’s way of encouraging businesses to invest in themselves and purchase new equipment. The 2019 updates, found in the IRS tax code, make this a true benefit. For example, you can deduct the full price of new equipment—multifunction printers, wide format printers, production press—you purchase for your business.
The Section 179 deduction is $1 million. 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.
Qualifying purchases must be made during the tax year, so if you'd like to take advantage of Section 179 this year, you have until the end of the day on December 31, 201 to purchase the equipment and get it up and running.
If you're skeptical this benefit applies to you because you want to buy used, or lease rather than buy, you’re in luck—equipment qualifies whether it is new or used, purchased, leased or financed.
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.
Section179.org’s Deduction Calculator can help you get a solid idea of the savings waiting for your company.
Be sure to consult with your financial advisor to discuss how Section 179 deductions can factor into your purchasing strategy.
If you’ve been holding off on making a big equipment purchase, there’s still time to take advantage of this year’s Section 179 benefits. Contact us and let’s talk budget, timelines and how to make it happen.
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