Jan 1, 2016 – The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) was passed by both the House and Senate and signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000. Read the summary from the Ways and Means committee here.
Section 179 Deduction: Until further notice, Section 179 is permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.
50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.
IMPORTANT: Section 179 for Current 2016 Tax Year (This Year)
Section 179 can provide you with significant tax relief for this 2016 tax year, but equipment and software must be financed and in place by midnight December 31, 2016. Use this 2016 Section 179 Calculator to see how much the Section 179 tax deduction can save your company.
Business Owners, please note: Not only can you take up to $500,000 in tax write-offs on your 2016 taxes, but you also have the option of spreading the payment via a lease transaction over 3, 4, or even 5 years. This means you can save THOUSANDS on your 2016 taxes, while paying over the next few years. Go here, for Fulcrum Group’s financing options and leasing application.
Some key projects we’re seeing people take advantage of right now, include:
- Phone Systems
- Network Upgrades (servers, storage, networking).
- Windows 2003 Server Upgrades
- New computers for staff (improve staff performance AND morale)
Take a look at some of the recent solutions we’ve put in place and consider the impact they could have in your own organization:
- Remote Access Solutions
- Other Cloud Solutions for Small/Med businesses
- Unified Communication – office phone system solutions
Want to know what your tax savings could be? Visit our updated Section 179 Tax Savings Calculator. We aren’t tax professionals, so please consult your tax professional prior to making any decision.
Fill out the form below and we’ll have a Fulcrum Group Account Manager reach out to you immediately to discuss how an end of year technology purchase could benefit you.