With fewer than two months left of 2019, last minute tax-year preparations are underway. What does that mean for you and your small business? Follow these steps to ensure you get the most out of the Section 179 of the IRS Code.
Contrary to belief, Section 179 is not a complicated tax code. In fact, it was created to help small businesses. Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment financed during the tax year, and is in addition to any depreciation, bonus depreciation or other deductions. Essentially, this encourages businesses to invest in themselves.
What does this mean for your business? If you finance a piece of qualifying equipment, you can deduct the full purchase price from your gross income. While it is geared toward general business equipment, if you use it in your business more than 50% for business-use, it will most likely qualify. The cost of the equipment can be deducted in a single tax year and allows a business the ability to expense up to $1,000,000.00 in equipment purchases if put into use by December 31. Calculate your cash savings HERE.
If your business has or is considering financing or leasing business equipment, the time is now.
Alliance Leasing & Financial Services, Inc. is able to assist your business in structuring your equipment lease or financing agreement to take full advantage of Section 179 benefits. Our product is unique because it is written in the form of an Equipment Finance Agreement. This allows you to write off 100% of the sales price and own the equipment at term end. Contact us today to get started 800-449-0674 or firstname.lastname@example.org.