Big Tax Savings
January 15, 2018
Section 179 Tax Savings
The purchase of new equipment in 2018 could lead to significant tax savings next year.
When you purchase qualifying equipment, 100% of the purchase price can be deducted on your income taxes in the year it is put into use.
Some examples of equipment that may qualify for the deduction include:
- Phone Systems
- Off-the-shelf Software
- Office Furniture
- Office Equipment
This is not a complete list of qualifying equipment so please consult your tax advisor to review additional possibilities.
By taking advantage of the Section 179 tax deduction, it is not uncommon for the tax savings to exceed the monthly payments for your new equipment.
The impact of financing your purchase
Financing new equipment can eliminate some cash flow concerns that would stem from paying cash and also preserves your other lines of credit.
The Section 179 deduction puts cash savings in your pocket much more quickly than depreciating equipment over a long period of time. The Section 179 deduction limits vary each year and the 2018 limit is $1,000,000.
If you are considering an equipment purchase, submit Banleaco’s simple online Express Application and you will know if you are approved within minutes (during our business hours).
For additional details on the Section 179 deduction and how it can work for you, please contact your tax advisor.