Section 179 Tax Write-offs: You can write off 100% of equipment purchased in 2016 – up to $500,000, and not to exceed your Adjusted Gross Income. Whether you pay cash or finance you can write off the full amount this year and save in taxes next spring. The benefit of financing: you get the full write off but still have use of your cash and pay for the equipment as it makes money for you over time. For Example, if your State and Federal income combined tax rates are 40%, on a $25,000 purchase you will save $10,000 in taxes next year. We don’t know if Section 179 will continue in to 2017 and these savings would be lost if not deferred a full year. Click here for more information.
This means that you have the ability to:
- Buy or lease the equipment that you need now.
- Realize significant tax savings by buying now.
- Gain benefits even if leasing.
Click here to use the Section 179 Calculator
(You should consult you tax and accounting advisors to determine how they may benefit from this federal government incentive. DT does not offer or provide tax or accounting advice.)