There is news for this year in connection with Section 179. The law of H.R.1, aka, The Tax Cuts and Jobs Act, has been passed and signed recently, it establishes that the deduction limit for Section 179 has increased to $1,000,000 for the current year.
At the same time, the limit on equipment purchases increased to $2.5 million. Plus the bonus depreciation is 100% and is made retroactive to 9/27/2017 and good through 2022. Another good news is that this bonus also includes those pieces of equipment that are already used.
You can check here 2018 Section 179 Calculator how this tax deduction might affect your company. On the other hand, you can also find more information about Section 179 in Fact sheet FS-2018-9, it includes temporary 100% bonus depreciation, changes to depreciation limitations on vehicles used for business, new treatment of farm equipment, and the recovery period for real property.
The Most Common Questions About Section 179
When it comes to Section 179, many questions arise, especially among business people because they find Section 179 Qualified Financing to be an attractive option to apply to their businesses.
The most common questions are:
- How Much Can I Save on My Taxes This Year?
- What Sort of Equipment Qualifies?
- When Do I Have to Do This By?
Let’s try to clarify certain concepts and answer these questions and some others so Section 179 becomes clearer for you. As well, we will try to provide more knowledge that you might need to make clever business decisions in 2018 taxes related to your equipment and software purchasing, etc.
First of all, it might be relevant to point out that at Section179.Org you can find a lot of information in connection with this section. Several topics such as IRS Tax Code Section 179 are discussed in this site. It might help you make possible financial decisions for your company after reading it.
Then, Section 179 may be profitable for you, that is why you should be able to learn as much as you can about it.
Why Section 179?
The Section 179 Deduction is considered a tax incentive which is easy to use and might give different businesses an invest by providing capital equipment used to improve the operations as well as increase revenue.
Most of the successful businesses tend to take advantage of legal tax incentives in order to lower their operating costs.
In simple words, if you take advantage of the Section 179 Deduction, you will notice how it helps your business to incorporate equipment, vehicles, and software. Moreover, it will allow you to keep more tax dollars.
Free Tools to Calculate Section 179 Deductions
As stated before, Section 179 is simple. You only have to buy and finance qualifying equipment, vehicles, and/or software, and then take a full tax deduction on for 2018.
If using a calculator, you might take special attention to the total savings on tax obligations. It is believed that if you lease or finance Section 179 qualified equipment, your tax saving will exceed the total amount of the first payments on your equipment. Currently, this procedure will make buying your equipment more profitable. Besides, this is completely legal and clear example of the intended incentive that Section 179 provides to small and medium businesses.
Why do not give Section 179 a try? You might find out that it helps your business and you can save on your 2018 taxes.
If you found this information useful and you want to read more about Section 179 Deduction or any other related topic, visit our webpage or contact us. We are willing to help you with this matter or any problem that you come across.