Tax deductions are looking up for businesses for the 2018 tax season. If you purchase equipment before the end of the year, you may be able to fully deduct the expense instead of depreciating over time thanks to Section 179. Although tax breaks have been available in the past, a law was passed in January 2018 to increase the tax deductions for businesses from $500,000 to $1,000,000.
As stated with Section 179.org, “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” (www.section179.org). In addition, you may also be able to cash in on those much-needed equipment purchase deductions for up to $2.5 million dollars. Not all items may be eligible for tax deductions so consult with your CPA. Take advantage of these tax benefits and use them before you lose them.
Questions? If you would like any additional information about the Section 179 benefits, please visit them online at www.section179.org. If you are interested in learning any more about Mode5, please contact us at 757-628-8324.