Now is a great time to buy revenue producing equipment from Contractors Services and save money on your tax bill. Deduct up to $1,000,000 with new or used equipment purchases made throughout the calendar year.
If you want to conserve your cash and still take advantage of the tax benefit, financing programs are available through AP Equipment Financing, with minimal out of pocket expenses and a simple application process.
What is Section 179?
Section 179 is part of the US Tax Code designed to help stimulate the economy. It encourages business owners to purchase equipment by allowing companies to depreciate up to 100% of the purchase in a single year. In 2018 the spending limit allowed under the code went up to$1,000,000.
The Tax Savings Can Be Big
As an example, if your company had $150,000 of taxable income and you purchased $150,000 of revenue producing equipment before the end of the year from Contractors Services, you could depreciate the purchase and fully offset your tax bill. If your tax rate is 21%, this would reduce your tax liability by $31,500 for the year! If you didn’t want to use all 100% of the equipment purchase, you can carry a portion over and use it in future years.
What About Section 179 For Next Year?
Section 179 is here to stay because Congress made it permanent in 2015 and increased the limit from $500,000 to $1,000,000 in 2018. This allows you to take advantage of the benefit each year and keep more money in your pocket to help your business grow.
Contact your accountant for details
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