Look below for some valuable information on Section 179
What is Section 179?
Section 179 allows businesses who finance to write off full equipment costs in the year they buy it rather than capitalizing costs over the useful life of the equipment and waiting years to receive deductions.
How it works!
Say your customers bought a $10,000 piece of equipment for their business. Under normal depreciation rules, they would only receive a portion of the cost in deductions each year over its useful life. Now, under Section 179, they can deduct the entire $10,000 from their net income in the first year they own it. So, assuming a 35% tax bracket, they will have a tax savings of $3,500, meaning a lowered cost of equipment to 6,500!
Save 1000’s in Taxes
Your customers can potentially deduct the full amount of the equipment they financed this year and it is super simple!
Cash for emergencies
Financing allows your customers to have cash on hand for emergencies and other unforseen business costs.
Reinvest in Business
The amount they can write off in taxes can exceed profits, allowing them to finance more equipment and reinvest.