Section 179 of the IRS tax code gives businesses the opportunity to deduct the FULL purchase price of qualifying new and used equipment, and software placed into service during the tax year they were purchased or financed. This tax break encourages small businesses to invest in themselves and to purchase equipment sooner rather than later.
There are some limits, however, to the amount that can be written off ($1,000,000 in 2018). The Section 179 deductions decrease dollar for dollar on purchases over $2.5 million. After the Section 179 benefits are exhausted; Bonus Depreciation of 100% can now be taken until 2022 on the remaining amount of equipment placed into service. Use this calculator to help determine your Section 179 write off amount and the tax savings it might generate for you.
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.
Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.
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