During the final quarter of the calendar year, many businesses will look to reduce their annual tax bill to Uncle Sam.
We encourage you to check out the benefits of IRS Section 179. Section 179 allows customers to purchase or finance (lease to own) capital equipment up to $ 1,000,000, and be able to deduct the entire amount (dollar for dollar) from their Federal Income Taxes.
For businesses wanting to reduce their tax liability, this is a great tool that allows you to acquire capital equipment prior to year-end, as compared to waiting until calendar year 2020.
Here is an idea of what we’re talking about:
IRS Section 179 and Bonus Depreciation
The deduction limit for Section 179 is $1,000,000.
• This means that if you buy (or finance) a piece of equipment, you can deduct the Full Purchase Price (up to $1,000,000) from your gross income.
The 2019 Section 179 deduction threshold for total amount of equipment that can be purchased is $2,500,000.
• This means that you can purchase more equipment and still have the benefit of the Section 179 deduction.
100% for 2019 New and Used Equipment Allowed
• Under Modified Accelerated Cost Recovery System (MACRS) Bonus Depreciation has increased first-year depreciation deduction to 100% (vs. 50%) of the adjusted gross basis of qualified property.
• This goes into effect for assets placed in service after September 27, 2017 and before January 1, 2023.
• Another significant change under the new tax law, is you can use bonus depreciation for purchases of new or used property. Under prior law, you could only use bonus
depreciation for new property.
Call us (919) 776-7737 or fill out the request a quote form on our website to take advantage of this program.
*Credit & equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section #179 depreciation schedule which allows rapid first year depreciation of certain assets acquired. The amount of previous
depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax advisor or accountant for additional information. Equipment must be purchased and placed in service by 1/1/2023.