If you purchase and finance equipment before December 31, you may take advantage of Section 179 tax savings. Use this calculator to see how your company may benefit from 2017 tax deductions.
What You Should Know About Section 179 Tax Deductions:
- Section 179 of the tax code has been extended to allow Small Businesses (those whose equipment purchases of all kinds, new or used, do not exceed $2,030,000) to expense the first $510,000 until 12/31/17. The deduction is decreased for any amount over $2,030,000.
- The Protecting Americans from Tax Hikes Act of 2015 also extends “bonus” depreciation of 50% for purchases by 12/31/2017. It will phase down to 40% in 2018 and 30% in 2019.
- If a company cannot utilize the additional depreciation write-off, they may still benefit from this new legislation by entering into an “Operating Lease” agreement for the new equipment. In this situation, the leasing company may receive the accelerated tax benefits and may pass them back to the user of the equipment in the form of a lower monthly lease rate.
*CCG is not a qualified tax adviser. This worksheet must not be interpreted as either a legal opinion or a tax advisory. You should always consult your accountant prior to making any purchase based on tax consequences. For more details, visit the IRS website.