If you are a small business owner, there is still time to take advantage of the Section 179 Deduction before year end.
Section 179 makes it possible for businesses to deduct the full purchase price of qualifying equipment/software that they have financed or purchased during the relevant tax year. If you leased or bought qualifying equipment in 2016, you may be able to deduct the full purchase price from your total gross income.
If you want to take advantage of the Section 179 Deduction this tax year, all software and equipment must be financed by midnight of December 31st, 2016.
What is the Section 179 Deduction Limit?
The 2016 deduction limit is $500,000 with an annual business investment threshold of $2 million. If you go over this limit, the amount you are able to deduct will be reduced dollar by dollar. If your gross income exceeds $2.5 million, the Section 179 Deduction is no longer applicable.
What is Bonus Depreciation?
Good news! 50% bonus depreciation has been extended through 2019. Bonus depreciation makes it possible for both small and large businesses to depreciate 50% of the total cost of equipment acquired during 2015, 2016, and 2017.
Are you ready to take advantage of the Section 179 Deduction? There is still time to purchase or finance new/used equipment! Contact KLC today to discuss your options.
If you’d like to learn more about the Section 179 Deduction, click here.