I hope everyone had a safe and happy Thanksgiving! Now that Black Friday is winding down, it is time to focus on the home stretch of this business year.
There is a section of the tax code that is designed specifically for small businesses, included in the tax code with the express intention of lowering a small business’s yearly tax burden and increasing a business’s cash on hand for the upcoming new year. It is the Section 179 Deduction!
Essentially, it provides for a small business to purchase up to $500,000 of new and used equipment and off-the-shelf software right up until December 31, 2016, and write-off the entire amount on your 2016 business tax returns. In addition, as an extra incentive, a small business can purchase up to $2,000,000 during the year, with the amount over and above the first $500,000 qualifying for a one-time 50% Bonus First Year Depreciation!
As I am not an bookkeeper, accountant or a CPA, I cannot speak specifically to your tax needs, but what I can tell you is that I have made several of my customers aware of this incentive over the years, and each of them has benefited from end of the year purchases of hardware and software. I have found a nice link that does a nice job of explaining the 179 Deduction, with a very simple and easy to understand example that will illustrate the true benefit of end of year purchases. The link is:
Have a look and see if it applies to your business model. If so, and you are in need of discussing some year end purchases, please don’t hesitate enter your information in the “Contact Us” section of this site and we will get in touch with you asap.
Bill Mann, 847-542-3841, email@example.com