Section 179 Tax Savings on New and Used Heavy Duty Construction, Mining, Scrap and Forestry Equipment
Jan 1, 2017 – Section 179 is still affected by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) that was signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000, where it will remain for all of 2017. For those interested, you may read the summary from the Ways and Means committee here. Section 179 Deduction: Until further notice, Section 179 will be permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years. 50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019. IMPORTANT THIS YEAR: Section 179 for Current 2017 Tax Year 2016 Section 179 Tax Information (Last Year) The PATH ACT passed in December of 2015 affected 2016 and beyond, making the Section 179 deduction for 2016 $500,000. In addition, the 50% Bonus Depreciation was reinstated. Answers to the Three Most Common Section 179 Questions How Much Can I Save on My Taxes in 2017? What Sort of Equipment Qualifies in 2017? When Do I Have to Do This By? Many businesses are finding Section 179 Qualified Financing to be an attractive option in 2017, especially since the expected Federal Discount Rate increases don’t leave much time for action. Please apply today. More Section 179 Deduction Questions Answered Welcome to Section179.Org, your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding Section 179, and clearly and honestly discuss the various aspects of IRS §179 in plain language. This will allow you to make the best possible financial decisions for your company. Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have a lot of questions regarding Section 179 such as: We’ll answer all of these questions, and make certain that you come away with all of the knowledge you need to make smart business decisions in this 2017 tax year regarding equipment and/or software purchasing and Section 179. Why? Because if you’ve been thinking about buying or leasing new equipment and/or software, it’s definitely to your advantage to use this excellent tax break. Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment. In short, taking advantage of the Section 179 Deduction will help your business keep more capital, while also getting needed equipment, vehicles, and software. Free Tools that Make Calculating Section 179 Deductions Simple Section 179 is really very simple. You buy, finance or lease qualifying equipment and/or software, and then take a full tax deduction on it this year (also, there are a few other things, which we’ll go over, but in a nutshell, that’s the idea). To give you an estimate of how much money you can save, here’s a Section 179 Deduction Calculator to make computing Section 179 deductions simple. If you use the calculator, take note of the savings on your tax obligation. Many people find that, if they lease or finance their Section 179 qualified equipment, the tax savings actually exceed the first year’s payments on the equipment (making buying equipment profitable for the current tax year). This is perfectly legal, and a good example of the incentive that Section 179 provides small and medium businesses. |
