Industry Updates

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IRS Section 179 – Great Tax benefit.  Act now before year end!

IRS Section 179 is an equipment purchasing tax benefit that small businesses need to be aware of, mainly for equipment purchases. This is a benefit that needs to be taken advantage of before year end!

In essence, Section 179 allows small business to write off 100% of their equipment purchases up to $1,000,000 if the purchase (or lease) is completed prior to December 31st, 2018.  This is not a new benefit, but each year the limitations change.  If you are in the market now for medical and or office equipment, it is a good time to consider making those purchases, before this program changes for 2019.

Of course, there are limitations and caveats that need to be considered carefully.  First, you should get together with your tax professional and seek their advice to make the wise financial decision taking into consideration your year-end profitability picture, and your equipment needs.  Always consider the ROI on any piece of equipment to ensure you can justify the expense: cost of equipment, number of times it will be used (weekly, monthly, yearly), and how much you can charge the customer for each use to determine incoming revenue and ROI.

There are many valuable website resources to refer to that will help explain Section 179 and the limitations.  

https://www.section179.org/ 

https://en.wikipedia.org/wiki/Section_179_depreciation_deduction 

http://fidelitycapitalonline.com/news/articles/the-section-179-deduction-explained/  

https://www.irs.gov/pub/irs-pdf/p946.pdf 

 

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