Section 179 Tax Deduction
Take full advantage of the benefits of Section 179 and Bonus Depreciation today!
This means businesses are able to deduct the full cost of equipment acquired for business use from their 2017 taxes, up to $500,000, not exceeding the $2,000,000 threshold of equipment purchased this year (dollar-for-dollar phase out starts at $2,000,000 and is completely eliminated above $2,500,000). The deduction can be used on new and used equipment, unlike Bonus Depreciation, which must be used on new equipment only.
Last year, Congress extended the 50% Bonus Depreciation through 2018, which means you are able to depreciate 50% of the cost of the equipment that is acquired and put into service this year and next. The bonus depreciation deduction phases down to 40% in 2018 and 30% in 2019.
Using the Section 179 deduction with an equipment purchase can be very profitable and is a sound financial strategy for any business. You are able to deduct the full amount of the equipment without paying for the full amount of the equipment this year. The amount you save in taxes can actually exceed the payments, making this a bottom-line friendly deduction.