Did you know that you can reduce your tax liability for 2018 AND upgrade your existing office technology with new devices and off-the-rack software purchased or leased and put in use by Dec. 31st? You can! Section 179 is MORE BENEFICIAL to SMB than ever. Why? Purchasing power! At the moment, it is one of the few government incentives available to SMB, providing business owners with generous new (and higher) deduction limits. Businesses can leverage Section 179 to write-off the ENTIRE PURCHASE PRICE of qualifying equipment for the current tax year up to $1,000,000.
Most of the equipment your business will purchase, finance or lease is qualified for the deduction, so make sure you leverage the deduction while it is still available.
Section 179 Quick Reference:
- 2018 Deduction Limit = $1,000,000 (one million dollars)
This deduction is good on new and used equipment, as well as off-the –shelf software purchased or financed and put into service during the 2018 tax year.
- 2018 Spending Cap on equipment purchases = $2,500,000
This is the max amount that can be spent on equipment before your company’s Section 179 deduction begins reduce on a dollar for dollar basis.
- Bonus Depreciation: 100% for 2018
This is generally taken after the Section 179 Spending Cap is reached and is available for both new and used equipment.