For 2017 – The 2017 deduction has a limit of $500,000! Taking advantage of the IRS Section 179 deduction might be the most profitable decision you make in 2017…and beyond.
What is the IRS Section 179 Deduction?
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Today, Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small businesses. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are actually taking action and getting real benefits.
Essentially, it works like this: When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example). Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That’s the whole purpose behind Section 179 – to motivate the American economy (and your business) to move in a positive direction. For most small businesses, the entire cost can be written-off on the 2017 tax return (up to $500,000).
Use this 2017 Section 179 Calculator to see how much the Section 179 tax deduction can save your company. Save even more with 90 Day Deferred Payments!
Go here, for Fulcrum Group’s financing options and leasing application.
Some key projects we’re seeing people take advantage of right now, include:
- VOIP Phone Systems
- Virtual Server Implementations (Servers, Storage)
- Network Switching and WiFi 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.