Technology & Equipment Tax Deductions With Section 179
With only a little over a month left in 2017, it’s time to start thinking about the Section 179 tax deduction and how it can be applied to your year-end business purchases. This is a great opportunity to maximize your purchasing power by taking a large tax deduction on qualifying equipment and software.
The limit for 2017 is $500,000 and the 50% bonus depreciation will be extended through 2019. Businesses will be able to depreciate 50% of the cost of equipment or software that is put into service during 2017.
How does Section 179 work?
The Section 179 tax code allows business owners to deduct the full purchase price (up to $500,000) of purchased or leased equipment from your gross income instead of requiring the cost to be depreciated. Once the equipment is purchased, you will complete a special IRS form and you’re all set!
What qualifies for the deduction?
Any physical equipment or software that is purchased for business use and put into production between January 1 and December 31, 2017. Some of the qualifying purchases are:
- Business vehicles
- Office equipment
- Off-the-shelf software (any software without a custom code, that is available for the general public and is used in your business as an income producing activity)
Use it or lose it!
If you plan on purchasing business equipment including computer hardware or software, it’s in your favor to make those purchases prior to the end of the year so that it will be in place by midnight December 31st, 2017. Use this handy calculator to see how much you could save and check out all of the equipment and software that qualifies!
What should you do now?
- Schedule time to talk with your financial advisor or accountant to determine how your business can best utilize this tax break
- Contact your sales rep or our sales department and we can begin planning these purchases
We’ve helped clients from Grand Rapids to Traverse City to Chicago. It’s easy to take advantage of the Section 179 tax deductions. See how much you can save today!