The Benefits are Endless

Section 179 was created specifically for small and medium-sized businesses. Any Business that purchases and/or finances less than $1,000,000 in qualifying equipment (new or used) during the 2019 tax year should qualify for the IRS 179 Deduction.

Save $1,000's
You can potentially deduct the full amount of equipment you financed this year. For more information contact your tax professional and see how you can save.
Extra Cash
Financing allows you to save your cash for emergencies or unforeseen costs! You can also make money while working to pay off your equipment.
Reinvest
The amount you write off in taxes can potentially exceed profits, which allows you to reinvest in your business allowing you to continue to grow.

Tax Saving Calculator

Enter your equipment cost to show your potential savings.

Here’s How It Works

Say you bought a $10,000 piece of equipment for your business. By taking advantage of Section 179, you can deduct the entire $10,000 from your net income in the first year you use it. So, assuming you are in a 35% tax bracket, you will have a tax savings of $3,500, meaning a lowered cost of equipment to $6,500!

Watch How Section 179 Can Benefit You

What are the advantages of financing?

A business that finances qualifying equipment will still have the opportunity to take full advantage of the Section 179 tax deduction. Doing so is seen as a financial strategy to the bottom-line operations as this allows you to acquire equipment while making smaller payments, preserving much-needed cash flow.

While minimizing out-of-pocket expenses, the business can deduct the full amount of the equipment (and/or software) without paying the full cost in the year acquired. Deductions in this manner can actually allow you to save a higher amount in taxes because the total write-off can actually exceed the full year payment amount for the equipment.

What is qualifying equipment?

• Equipment & Machines Purchased For Business Use
• Personal Property Used In Business Operation
• Computers & Laptops
• Off-the-Shelf Software
• Office Furniture
• Large Property / Equipment Attached To Building (but not a structural component such as conveyor belts, printing press, large tools)

Qualifying equipment can also include items that are used for both personal and business operation. Section 179 deductions can only be taken if the equipment is used more than 50% of the time for business.

General information: Section 179 for 2019 tax year

The Section 179 deduction program applies to new equipment, used equipment and off-the-shelf software that is financed in the 2019 tax year. At this current time, a business can elect to write-off up to $1,000,000 if the qualifying equipment is placed into service by December 31, 2019.

Who qualifies for Section 179 deductions?

Section 179 was created specifically for small and medium-sized business. Any businesses that purchases and/or finances less than $1,000,000 in qualifying equipment (new or used) during the 2019 tax year should qualify for the IRS Section 179 deduction. The tangible personal property and/or off-the-shelf software must be put into operation by December 31, 2019.

Section 179 100% bonus depreciation

Bonus depreciation is another deduction (outside of Section 179) to deduct 100% of equipment in the first year of service. Any businesses can leverage the 100% bonus depreciation (in the year it’s put into service) that applies to new equipment only. However, bonus depreciation is not limited to your taxable income. You can deduct any amount of bonus depreciation, and if the deduction creates (or increases) a net operating loss, you can carry that amount back to offset previous year’s income and also carry any unused loss forward to deduct against future income. Both Section 179 and Bonus Depreciation are available for leased equipment.

Electing the Section 179 deduction - Form 4562

Taking advantage of the Section 179 deduction tax savings is not automatic through the IRS. A company must fill out form 4562 when filing taxes for the 2019 year, regardless if you are filing on time or through an extension. All Section 179 deductions are taken on an item by item basis, meaning you do not have to elect it on all qualifying equipment that was purchased and used in the 2019 tax year.

*This is for informational purposes only. Please consult professional advisors before making any tax, legal, financial planning or investment decisions.