Section 179

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The U.S. Government has passed a year-end budget deal that includes a permanent Section 179. Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years.

Section 179 Deduction

The maximum Section 179 “expensing” deduction goes from $510,000 to $1 million, while the threshold for phasing out the deduction increases from $2 million to $2.5 million. That means that your business might deduct the entire cost of buying equipment right off the bat. But remember, you may never deduct the entire cost of buying equipment. Section 179 only changes the timing of taking the deduction.

“Bonus Depreciation

To complement Section 179 expensing, 50 percent bonus depreciation is doubled to 100 percent for qualified equipment placed in service after September 27, 2017 and is expanded to include used equipment. After five years, the deduction will be gradually reduced until it disappears after 2026. This break combined with the Section 179 deduction can lead to big tax savings for small and medium-sized businesses! Talk to your tax advisors to find out how these new laws can benefit you. To see what your 179 savings could be, click right here for an interactive calculator

Financing Your Future!

As you shop the latest technology and equipment, learn more about your financing options. Industrial Equipment Capital can structure a program that will meet your needs. 

Contact Han’s Laser Financial: (909) 596-2627 or e-mail [email protected].
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