We've partnered with Paramount Financial to help you with financing your equipment needs. Learn more about their financing options here and preview your tax deductions below.
Deduct the full purchase or lease price of your equipment up to $500,000 through the Section 179 Deduction in 2016.
What is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during tax year 2016 should qualify for the Section 179 Deduction. For most small businesses, the entire cost can be written-off on the 2016 tax return (up to $500,000).
Limits of Section 179
Section 179 does come with limits - there are caps to the total amount written off ($500,000 for 2016), and limits to the total amount of the equipment purchased ($2,000,000 in 2016). The deduction begins to phase out dollar-for-dollar after $2,000,000 is spent by a given business, so this makes it a true small and medium-sized business deduction. Section 179 for 2016 expires midnight, 12/31/2016. If you wish to deduct the full price of your equipment from your 2016 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.
For more information on Section 179 Deduction, click on WWW.SECTION179.ORG