What is Section 179?
This IRS tax deduction allows businesses to expense 100% of the purchase price (up to $1,000,000) of equipment purchased, financed, or leased in the current tax year.
Usually when you buy equipment, like a portable, truck mount, or dehumidifier, you depreciate it little by little each year on your taxes. But Section 179 allows you to write off the full amount the same year you bought it.
EXAMPLE OF TAX SAVINGS:
With Section 179 Deduction
Without Section 179 Deduction
Equipment Purchase Price
Write-Off for First Year
First Year of Tax Savings (21% Assumed Tax Rate)
Cost of Equipment with Tax Savings
Leased Equipment Qualifies Too!
Even if you lease your equipment, you can still take advantage of the Section 179 deduction. In fact, using Section 179 with an equipment lease or finance agreement might be the most profitable decision you make this year!
That’s because the amount you deduct on your tax return will almost always exceed your cash outlay for the year when you combine (i) a properly structured Equipment Lease or Equipment Finance Agreement with (ii) a full Section 179 deduction. It is a bottom-line enhancing tool (plus, you get the new equipment and software you're adding to your business).
Run it past your accountant to find out how you can best take advantage of this deduction.
There’s only one catch...
Section 179 can save you a bundle at tax time, but in order to qualify, you have to make your purchase and put your equipment into use before December 31, 2018.
So if you’ve been thinking about getting some new equipment, now is a really good time to buy.
We have a lot of great deals going on right now, and we’d love to help you get the new equipment your business needs. Give us a call and let’s talk about how Jon-Don can help make your business more successful!
Depreciate Up to $500,000 Instantly with Section 179 for Mega Tax Savings!
Truck mounts, portables, air scrubbers, dehus, air movers—it all qualifies!