Congress extends the amount that small businesses may write-off for capital expenditures: $1,000,000.00
Businesses owners who acquire new or used equipment during the tax year 2018 should qualify for the Section 179 Deduction. The cost of the equipment can be deducted in a single tax year and gives the business ability to expense (deduct from taxable income) up to $1,000,000.00 in equipment purchases if put into use by December 31.
The $1,000,000.00 deduction phases out when a business purchases more than $2,000,000 in one year. An example of non-tax/capital leases include a $1.00 Buyout Lease, an Equipment Finance Agreement (EFA) and a 10% Purchase Upon Termination (PUT) Lease. Section 179 property is property acquired for use in the active conduct of business. By taking advantage of Section 179, the tax savings realized could be significant.
(Assuming a 35% Tax Bracket)
Reminder: to take advantage of the tax incentives, your business equipment must be put in use by year-end. You should contact your tax advisor to learn about the specific impact to your business. Interested in learning more? We’ll provide you with a free consultation and extend finance solutions so you can acquire the business equipment you need. Contact us today.
This incentive is only available through 2018. Acquire and put your business equipment to use before year-end!