As the year is quickly coming to an end it is time to think about how your taxes will be affected for the year. One thing many businesses consider is purchasing new equipment.
If you are considering acquiring equipment in the near future or are a supplier looking to save your customers money, Section 179 impacts you!
As part of the IRS Tax Code, Section 179 allows businesses to deduct the full purchase price of certain assets financed or leased and put into service during the tax year. Accelerating depreciation rather than spreading the deduction over the item’s useful life provides a larger tax deduction come tax time. With a $500,000 maximum deduction available, you could keep a lot more money in your pocket.
Additionally, since Section 179 covers new and used equipment or software, you can get the equipment you need now, take the full tax benefit now, and spread your expense over a multi-year financing term, thus significantly reducing your true cost of ownership.
Equipment could be things like new vans or trucks, tools, heavy duty equipment and even a GPS tracking system to help manage your business.
It is important to contact your tax advisor before making a purchase to make sure you qualify and what impact a substantial purchase would have on your taxes.
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