It’s almost the end of 2017, so we want to remind you of your options for saving on your taxes using the Section 179 deduction!
Purchasing new or used hardwood flooring equipment can greatly benefit your business not only because of the sheer power and capabilities of the machines themselves, but also because you may also claim a Section 179 deduction on qualifying equipment.
Besides the competitive advantages that this equipment can bring to your business, one of the best things about the deduction itself is that you can finance your purchase while taking advantage of the tax deduction on the full purchase price. This can really help out with your cash flow and can even give you a profit in certain cases, such as when you decide to lease a machine but claim the full deduction for that tax year.
Section 179 deduction dollar limits are different for the year 2017 than they were for 2016. The maximum amount you can elect to deduct for most section 179 property you placed in service in tax years beginning in 2017 is $510,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,030,000.
Qualifying equipment must be financed or purchased and put into use by 11:59 PM on 12/31/17.
Please note that this post is intended to offer ideas and opportunities, not specific tax advice. Please consult with your tax professional(s) concerning your specific situation.