Section 179 is a tax incentive created to encourage small businesses to lease, finance or purchase equipment and invest in themselves. Although large businesses also benefit from Section 179, the initial intent for this legislation was tax relief for small businesses. If you bought, leased or financed qualifying equipment in 2018, you can deduct the full purchase price from your gross income. You may even qualify for bonus depreciation. It’s not too late to take advantage of Section 179 for 2018; you have until December 31st, 2018 at midnight.
For 2018, equipment can be either new or used, and can be purchased, leased or financed. Deduct up to $1,000,000 for equipment installed and put into service by midnight on December 31, 2018. Qualified purchases now include improvements to non-residential property, such as HVAC, roof, fire protection, alarms, and security systems, up to $2,500,000. Section 179 changes annually, sometimes even mid-year, so now is the time to take advantage of this money-saving tax break. Learn more about how the deduction works and view an example balance sheet here.
Because Section 179 was designed with business growth in mind, almost all types of business equipment qualify for the deduction. All businesses need some type of equipment on an ongoing basis, and Section 179 makes purchasing or leasing that equipment financially attractive. From machinery to business vehicles, office furniture to computer software, chances are good that it’s included in the list of of qualifying equipment.
The bottom line is simple: Contact KLC today to take advantage of Section 179 and improve your bottom line. We can help you with any questions you have and discuss your various options. Get the equipment you need today and get a jump start on 2019!