SECTION 179 TAX BENEFITSIf you are looking to increase speed and capacity, beat the competition, or move into new markets, but you aren’t sure if you are ready to make the investment yet, make sure you have considered the Section 179 tax benefits you will receive by making that investment! By taking advantage of Section 179 you could easily save more in taxes in this year than you would pay in total first-year lease payments! That’s more than enough time to ramp up and start making money with your new equipment. We wrote about it in a recent blog post and we're glad to give you a tool to calculate your own savings below!
2017 Section 179
Tax Deduction CalculatorTM
Through Section 179 you can immediately depreciate your entire equipment purchase value up to $500,000. Additionally, this is the last year of the 50% bonus deduction before it starts phasing down in 2018*. The bonus depreciation allows you to depreciate an additional 50% of the remaining equipment price, above the $500,000 Section 179 limit.
For example, if you're ready to make a big investment in your business that totaled $650,000, you would be able to apply the entire $500,000 Section 179 deduction plus another $75,000 (half of the $150,000 remaining amount above $500,000) plus the normal 1st Year depreciation of $15,000. This is a total first-year deduction of $590,000, bringing your cash savings to a whopping $206,500 for a final lowered cost of equipment to $443,000.