Tax Savings Made Simple
With Section 179
It’s that time of year again, where business owners are trying to project what their taxes are going to look like at the end of the year.
Tax write-offs are always a good thing, and with the Section 179 tax deduction, you can effectively decrease the purchase price of any equipment purchase. Harbour Capital’s quick turnaround time will give you the opportunity to take advantage of this timely cost-savings tax deduction, while simultaneously helping your business grow with new equipment.
What is the Section 179 Deduction?
Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased new and used equipment. The equipment purchased, financed or leased must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.)
Many business owners ask us how much savings they will actually see with this deduction. Here is a simple, yet real example of how much you can save with this tax deduction.
Does My Equipment Qualify?
Most equipment that businesses purchase or lease will qualify for the deduction. Below are a few of the main types of equipment that can be used for the deduction:
- Equipment (machines, etc) purchased for business use
- Tangible personal property used in business
- Most Business Vehicles
- Computers & Software
- Office Furniture
- Office Equipment
How Much Can I Deduct?
For 2017, you can deduct equipment up to $500,000 of most new and used equipment purchased within this calendar year and put into use this calendar year. The catch here is that you must have purchased and the equipment and put it into use during this calendar year, in order to write off the full purchase price on this year’s taxes. This means that there is a very short amount of time left to be able to purchase equipment and take advantage of this tax deduction. With our 24-hour turn around and same-day approvals, we can have you approved for financing and have the equipment in your possession within days.
Please contact an accountant or tax professional with major questions and concerns.