Published by Marc Freedman on December 1, 2017
The 2017 Deduction Limit is $510,000
It’s great that states are giving out potentially billions of dollars in breaks to corporations moving their headquarters (who definitely needs it, right?), but what about everybody else? IRS Section 179 allows businesses to deduct the full amount of equipment (and certain software) purchases, up to a certain amount. This even applies to certain finance options and lease options! That means, whether you’re considering cash purchase or lease options of your equipment, there may be significant tax benefits for your business.
What does this apply to, for example?
- Phone systems and related software applications (i.e. call center, unified messaging, or video collaboration tools)
- Video surveillance systems and related software
- Equipment (machines, etc.) purchased for business use
- Tangible personal property used in business
- Business Vehicles with a gross vehicle weight in excess of 6,000 lbs.
- Computer “Off-the-Shelf” Software
- Office Furniture
- Office Equipment
- Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
- Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
What does this all mean?
Depending on your purchases over this past year, you may have remaining dollars left under the $510,000 threshold. Don’t leave that money on the table! Make your purchases now so you can take your deductions when you file your 2017 taxes.
We can help fast track your equipment purchases and finalize everything necessary for you to take those tax breaks!