Section 179 got a big boost from the Tax Cuts and Jobs Act. The deduction was not only given an increase – it literally doubled in size, to one million dollars.
This is big deal. If you own a small or medium sized businesses, you can write off a million dollars’ worth of equipment for the year because of this change.
If we assume a tax rate of 25%, this could knock a net of 250k off of your tax bill. Not only that, but the “cap” for total equipment purchases was raised to $2.5 million before the deduction starts to phase out on a dollar to dollar basis. One more significant change is that certain improvements to non-residential property can now be written off.
Not only that, but the “bonus depreciation” (which is usually taken after Section 179 is used up) has been raised to 100%, and now includes used equipment as well (Section 179 itself has always allowed for used equipment).
All of these changes are coming together at an opportune time. The economy was strong last year and many companies in our supported industries finding ways to invest in their infrastructure, facilities and new equipment. This is exactly what Section 179 is designed to do.
The only question is – “Are you taking advantage of it?”
If you need more information on how to use Section 179 financing in 2018, visit our friends at Crest Capital.