Small Business Could Save Thousands by Buying Before 2017
It’s hard to believe 2016 is coming to a close, but the tax year ending in less than a month, which means – it’s almost tax season. I can already hear you groaning as you start fumbling through your business paperwork, and I’m miles away.
If you’re looking for an investment option to help save you some money, Section 179 could be your solution.
Section 179 is in economic stimulus bill that allows small- and medium-sized businesses to purchase equipment and some software, without having to pay taxes on the money with which they purchase these items. This helps businesses save money in the long run, especially if they make large equipment or software purchases.
If you remember us talking about this last year, you’re on track.
If you’d like more information, you can visit Section179.org, or I’m sure your company’s accountant or financial consultant can talk more specifically about your situation. Here’s some key points:
- The deduction limit has been expanded to $500,000. This applies to new equipment, used equipment and off-the-shelf software.
- The spending cap is at $2,000,000, which means you can only spend this much on equipment during the year to qualify for this deduction. This ensures it’s being used by small and medium-sized businesses.
- Bonus depreciation is 50 percent for 2016, and is only available for new equipment.
- Purchases have to be made by midnight Dec. 31, 2016, for the dedication to apply to your 2016 taxes.
Here are some rough numbers on how much you could save if you invested in some Tormach equipment this year: