Section 179 of the IRS Tax Code allows businesses to deduct the cost of new equipment that was purchased or financed during that tax year.
In previous tax years, businesses could reasonably expect to write off a percentage of the total cost of new equipment purchased. For example, if a company in 2017 purchased up to $2 million worth of new equipment, they were eligible to deduct a limit of $500,000. This sounds like a great deal (and it was a much better deal than 2009’s $250,000 deduction cap), but this deduction still only covers 25% of the total cost of new equipment a business could purchase.
As of this year, the passage and signing into law of Section 179 of the IRS tax code allows businesses to deduct up to $1 million dollars on equipment that is purchased or financed in 2018. This means you can deduct the FULL PURCHASE PRICE of all Equiinet equipment purchased for your business! There has never been a better time to update your company’s old phone systems and computer software with Equiinet.
Essentially, between the dates January 1, 2018 and December 31, 2018, your business may lease or purchase any of the following items (and more!) and receive a full deduction of the total purchase prices. These items include:
Simply keep complete records of all the business equipment you leased or purchased during 2018 (including where you acquired the equipment from and the date it was acquired and put into service), and fill out IRS form 4562 when you file for your 2018 taxes. It couldn’t be easier!
Section 179 truly is fantastic for businesses. It is finally time to get those upgrades you desperately need! With Equiinet’s affordable services and products, and with new financing options (coming soon!), we are here to enable your business and help you have most amazing year, yet!
For more information on how Equiinet can protect your bottom line, give us a call. Get more information on Section 179 of the IRS tax code. We can’t wait to help you grow!
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