Section 179 Calculator & FAQ’s

SECTION 179 CALCULATOR

Please consult your tax professional about specific tax savings for your business.

HOW MUCH WILL I SAVE?

Enter Your Equipment Cost To Find Out



Section 179 Deduction

Bonus Depreciation Deduction

Normal First Year Depreciation

Total First Year Deduction

Cash Savings

(assuming a 35% tax bracket)

Lowered Cost of Equipment

(after tax savings)
Section 179 Tax Calculator & Deduction
Take Advantage of the IRS Section 179 Today!

Under section 179 of the internal Revenue Code, businesses can write off the full cost of equipment in the year they purchase them, rather than deducting a portion of their cost annually over the life of the equipment.

Section 179 FAQ’s

Frequently asked questions on IRS Section 179.

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 cashflow.

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.

General Information: Section 179 For 2016 Tax Year

The Section 179 deduction program applies to new equipment, used equipment and off-the-shelf software that is financed in the 2016 tax year. At this current time a business can elect to write-off up to $500,000 if the qualifying equipment is placed into service by December 31, 2016.

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.

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 $500,000 in qualifying equipment (new or used) during the 2016 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, 2016.

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 2015 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 2015 tax year.

Section 179 50% Bonus Depreciation

Section 179 does allow for a 50% Bonus Depreciation that will be extended through 2019. Your business will be able to depreciate 50% of the cost of equipment that was acquired and put into service from 2015 – 2017. In 2018 the depreciation percentage will decrease to 40% and fill further drop to 30% in 2019.

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