How to get Your Best Deduction with Section 179
What are Section 179 Deductions?
The IRS enacted Section 179 deductions to promote small businesses growth. When you make capital expenditures, like equipment or software, you can deduct the cost of the asset over time. That is basic depreciation.
The advantage of Section 179 is the ability to take 100% Deductions for qualified assets purchased and placed in service in the same year. Taking the full deduction will save you significant money on your business tax return. The Section 179 Deduction limit is $500,000 for all of 2017.
Qualified property can be elected for the Section 179 deduction. Most tangible business equipment will qualify for the deduction. This includes new, certified pre-owned, refurbished or used equipment. It should be purchased and available for use by the end of the last day of the tax year. Most businesses find equipment financing to be very helpful for significant equipment purchases. More info is available at DentalPlanet.com/financing
Taking Your 179 Deduction in 3 easy steps
Purchase qualified equipment during the tax year.
Keep records of the purchase price, date, freight, installation and in-service date for qualified purchases.
Take the 179 Deduction for the total cost of all purchases, up to $500,000. Don't forget to include additional charges for taxes, freight, and installation.
Additional Resources are Available.
There are additional deductions for purchases over $500,000 up to $2 million. Please visit DentalPlanet.com/tax_info or section179.org for more information. Dental Planet is not a tax advisor, so please consult your tax advisor for specific details relating to your specific situation.