It’s the Most Wonderful Time of Year Thanks to Section 179
Is brand-new tech for the workplace on your holiday wish list? Well, you do not have to wait–you’ll be rejoicing this tax season thanks to Section 179.
Section 179 allows you to deduct the complete price of any qualifying devices or application bought or leased during this past year. This means you do not have to wait for vacation sales to kick in, you can take action now to stay competitive and purchase the equipment you require while benefiting your bottom line.
Purchased, financed or leased equipment
Desktops, laptop computers, tablets, mobile phones
Servers, printers, routers, network switches, network security devices
Off-the-shelf applications (productivity, administrative, operating systems, etc.)
$ 500,000– Maximum overall quantity you can deduct of equipment purchased in 2017.
$ 200,000– Maximum overall quantity you can deduct of leased equipment in 2017.
$ 2M– Maximum overall quantity of devices purchased in 2017 eligible for complete deduction.
Purchase, finance or rent the equipment and put it into use by midnight December 31, 2017. Additionally, your purchase must be for business utilize more than 50 percent of the time.
Just make the purchase and utilize Form 4562 to claim your deduction.
The complete deduction can be declared up until you’ve reached $2M in equipment or application purchases.
Past the $2M point, the reduction decreases on a dollar-for-dollar basis and disappears once $2.5 M worth of equipment is purchased.
For most situations, applying the tax break will be as simple as deducting the full amount of the purchase as a Section 179 cost; although, sometimes it can be a bit harder.