Taxes are costly. Fortunately, there are incentives such as Section 179 that can help you save on your taxes so you can grow your business.
Who qualifies for this deduction? According to Section179.org, “all businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during the tax year 2016 should qualify for the Section 179 Deduction.” In other words, you get to deduct the entire purchase price of your equipment from your gross income in the tax year that you purchased it.
There are a few limits. The first is that the deduction is limited to $500,000 the first year, plus 50% bonus first year depreciation and normal first year depreciation.
Second, the total amount of the equipment purchased cannot exceed $2,000,000 (making it a true small business tax incentive).
Lastly, the equipment must be purchased and put into service within the applicable tax year, which means the deadline for getting some new three phase power is by the end of the day on December 31, 2016.
As you can see, Section 179 is a simple tax incentive created specifically for small and mid-sized business owners to take action and continue moving their business in a positive direction.
As a guide for how Section 179 can help your business, please see the chart below…..
As always, be sure to speak with your tax professional for more information and if you qualify for this and any other tax deductions. For more information visit Section179.org.