Don’t miss out on an opportunity to keep tax money in your pocket!

Section 179 – Don’t miss out on an opportunity to keep tax money in your pocket

Did you know that buying used equipment for your business can save you a significant amount off your federal taxes this year? Section 179 of the U.S. tax code is a gift to small business owners who are looking to expand their business by purchasing equipment.

This year, Congress allows business owners to deduct up to $500,000 in qualifying equipment in the year of its purchase, even if you do it on December 31. Under normal circumstances, you’d have to depreciate a long-lived asset over a number of years (for example, a printing press might have a life of 11 years). This law encourages small businesses to expand at a more rapid pace by keeping tax dollars in your pocket.

What’s qualifying equipment? It’s a very broad class of assets both new and used, including:

  • Equipment purchased for business use (e.g, machines)
  • Tangible personal property used in business
  • Business vehicles with a gross vehicle weight rating in excess of 6,000 lbs.
  • Computers
  • Computer software (“off the shelf”)
  • Office furniture
  • Office equipment
  • Property attached to the building that isn’t a structural component (commonly known as “fixtures”, like a printing press, air compressor, etc.)
  • Assets with its use split between personal and business use (your deduction will be reduced by the percentage of use time devoted to personal use)

Don’t hesitate—act now to take advantage of this great benefit to small businesses!

 

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