The Section 179 Deduction (Gear!)

The Section 179 Deduction (Gear!) https://wahospitality.org/wp-content/uploads/2017/10/TFT-Tax-deduction.jpg

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 program does not assume you are eligible to take advantage of the IRS Section 179 which allows a rapid first year depreciation of certain assets acquired. It is recommended that you consult with your tax advisor for more information. Equipment must be purchased and in place by 12/31/17.

Jan 1, 2017 –   Section 179 is still affected by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) that was signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000, where it will remain for all of 2017. For those interested, you may read the summary from the Ways and Means committee here.

Section 179 Deduction: Until further notice, Section 179 will be permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.

50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

IMPORTANT THIS YEAR: Section 179 for Current 2017 Tax Year
Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight December 31, 2017.

Use this 2017 Section 179 Calculator to see how much the Section 179 tax deduction can save your company.

www.section179.org

This information does not constitute tax advice. Please check with your tax advisor for how the Small Business Jobs & Credit Act of 2010 applies to your business. Section 179 deduction limit—$500,000.00.

Need assistance Contact the Washington Hospitality Advisory Network through your Area Coordinator.

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