News Alert: Section 179 Increased for 2018
Jan 2, 2018 – With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.
Further, the bonus depreciation is 100% and is made retroactive to 9/27/2017 and good through 2022. The bonus depreciation also now includes used equipment.
See the fully updated 2018 Section 179 Calculator to see how this tax deduction affects your business.
News Alert: IRS Fact Sheet issued for 2018
Apr 25, 2018 – Fact sheet FS-2018-9 provides info on Section 179 deductions including temporary 100 percent bonus depreciation, changes to depreciation limitations on vehicles used for business, new treatment of farm equipment, and the recovery period for real property. Read the new IRS Fact sheet here: New Rules and Limitations for Depreciation and Expensing under the Tax Cuts and Jobs Act
Don’t forget to take advantage of the Section 179 tax deduction. Utilizing the Section 179 deduction allows companies to garner some relief when investing in the purchase of business equipment. The deduction also allows you to take the equipment’s FULL value even if you are financing and haven’t yet finished paying the equipment off. You simply must secure financing of the equipment by 12/31/2018.
2018 Deduction Limit = $1,000,000
This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2018, the equipment must be financed or purchased and put into service between January 1, 2018 and the end of the day on December 31, 2018.
2018 Spending Cap on Equipment Purchases=$2,500,00
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3.5 million on equipment won’t get the deduction.)
Bonus Depreciation: 100% for 2018
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
There are various material goods that are eligible for the Section 179 deduction like:
As always, consult with your tax professional to ensure that all the proper qualifications are met, and contact us at firstname.lastname@example.org or 1-800-421-6167 for information on products that are available and qualify for this deduction.