With the year winding to a close, you may hear a lot about “Section 179” and how you’re business can benefit if you are looking to purchase some equipment before the new year.
We get just as confused as the next guy when you start talking “tax rate”, “deductions” and “depreciation”. We thought we would do a little research and try to explain how this could be a HUGE benefit to small businesses, we should know because Standard Tools is also a small business that takes advantage of incentives such as this.
When we say ‘equipment’, we mean any large purchase you buy to benefit your business. For example, a heated paint booth to help boost your productivity. Since it’s an ‘investment’ in your business, it is included in this category.
You can even finance it this year and still write it off to save thousands.
So, section 179 is what exactly? It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased (or financed) during the tax year. Wow! The FULL PURCHASE PRICE will be deducted from your gross income. (As long as the total purchase price is less than $2.2 million on equipment. Continue reading Buy Before January 1st to Save Thousands.*