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It’s That Time of Year – Tax Deduction Time

It’s That Time of Year – Tax Deduction Time

The 2017 tax bill is making headlines this week, with a number of proposed changes for businesses and individuals alike. One thing that hasn’t changed: the Section 179 deduction for business equipment and software purchased and put into service by December 31st.

The Sec. 179 deduction tops out at $510,000 for 2017. It’s a number that is mere pocket change for the largest U.S. corporations, but for small to medium-size organizations, spending half-million dollars or more on equipment is a significant expenditure, and being able to deduct most or all of the cost is tremendously valuable.

Writing off equipment via depreciation is standard for every business. But Sec. 179 allows businesses to write off the entire amount in a single year, rather than a multi-year write-off. For businesses that had a banner year and need a substantial deduction, a Sec. 179 deduction lowers the tax bill while upgrading equipment. For businesses that finance their new equipment, the Sec. 179 deduction helps balance the ledger. Either way, Sec. 179 is a true small business stimulant.

This calculator, courtesy of Crest Capital, shows the reduction in equipment cost after applying the Sec. 179 deduction. If you’ve been thinking about the benefits of adding a high-density mobile shelving system or a vertical storage system to your organization’s workspace, now could be the time to take advantage of Section 179. We’d be happy to help.

 

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