The end of 2019 is fast-approaching, and it’s time to consider the tax implications for capital equipment purchases.
Highlights to Section 179 tax deductions for business:
$1,000,000 Write-off Available in 2019
- This applies to new and used equipment, as well as some software manufactured by Hypertherm.
- Equipment must enter service during 2019.
$2,500,000 limit on equipment purchases
- Your deduction will be reduced if you exceed this amount.
100% Bonus Depreciation
- Applied after the spending cap is reached.
- Available for used and new equipment
How it Works
In the past, if your company bought equipment, the value would be depreciated over several years.
With Section 179, your business can realize full-value depreciation in the current tax year, which can have a huge impact on how companies budget for capital purchases.
So, most businesses will be able to deduct up to $1,000,000 in 2019, as long as they do not spend over $2,500,000 on equipment leases or purchases.
Financing and leases qualify for the same incentives as new or used equipment purchases with a $1 buyout.