Have you ever been on the fence about making a purchase, but didn’t pull the trigger because you figured you could always make that purchase later? Often you need an extra push, an incentive that removes any doubt. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This can have a large impact on a company as equipment costs can make it difficult for smaller companies to survive. There are not many government benefits available to small business as you probably have noticed. To take advantage of this years’ benefit you must purchase the qualifying equipment before the end of the year, which means there is not much time.
The chart below illustrates how your business can benefit from Section 179. As you can see the savings are quite significant and allow the opportunity to purchase or lease new equipment or to replace old equipment for your company. This program also works on the purchase or leasing of used equipment. Either way, you are making an investment to improve your business while saving a large amount of money in the process. This benefit should be enough to motivate you to get off that fence and purchase or lease equipment for your business. Lastly, for many smaller businesses, this benefit has allowed them to write off all the equipment they purchased in 2018.
One of the main areas that companies are taking advantage of Section 179 is in software financing. Software is expensive and usually lasts a few years before an upgrade is recommended. Companies are using the deduction to equip their hardware with the latest software which will bring them up to date for at least a few years. The nice thing about Section 179 and software is that it not only applies to financing software, but it applies to leasing software as well. Leasing software is a great option for businesses because it allows them to upgrade their software often.
One of the best places you can go to learn about Section 179 is straight from the source. irs.gov has several pages filled with information dedicated to Section 179. You can head over to our section dedicated to Section 179. You will find a Section 179 Deduction Calculator that will help you determine how much your equipment will cost factoring in the savings. Additionally, in our Section 179 section you can read about the different industries we can help with financing. To expedite the process and make sure you get your equipment before the end of the year you can fill out our online credit application for a quick response and get approved in as little as 48 hours. If you would like to speak with one of our equipment finance experts, give us a call at 1-800-341-1288
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