Last Chance to Deduct New Machinery
Deduct New Machinery
The Section 179 Tax Deduction has been a great success for small and mid-sized businesses since it was introduced as part of a stimulus package in 2008. This deduction encourages business owners to make capital investments by allowing them to deduct up to the full purchase price of machinery purchased and put into service during the tax year.
Quick glance at section 179 tax deductions
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year instead of capitalizing and depreciating assets over the year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. Though large companies can also benefit from section 179, it was mainly established to strengthen small and medium-sized companies’ financial ability to invest on equipment.
Changes for 2019:
The deduction limit for 2019 has been raised to a full one million dollars ($1,000,000) This is a substantial deduction, and means businesses can deduct the full cost of equipment from their 2019 taxes, up to $1,000,000. This can really make a difference to your bottom line at the end of the year.
To take advantage of these high Section 179 limits for 2019, the equipment must be purchased and put into service by midnight 12/31/2019. Use Form 4562 to claim your deduction…
Jesse Clayton Business, CNC Technology, General, Industrial News, News