United States - Section 179
With the Section 179 tax deduction, you can write off up to $1,000,000 of capital equipment purchases on this year's taxes.
This is great news, especially if you’re running a small to medium-sized business with capital expenditure not exceeding more than $2,500,000. After this amount is reached, deduction is phased out on a dollar-for-dollar basis. This applies to both new and old equipment, and off-the-shelf software as long as purchases are made before December 31.
How Much Money Can I Save?
This handy 2019 Tax Deduction Calculator can tell you exactly how much money you can save, depending on the amount you spend. Let’s look at the example below using a specific investment amount to see what the savings will be.
The chart on the left shows the calculation based on equipment purchases of $1,150,000. Using a 35% tax bracket and 100% bonus depreciation of $150,000, you can save a total of $402,500.
Visit Section179.org for details on how the deduction works. You can also access tax guides for previous years, starting from 2018 all the way to 2007.
Ready to Start Saving?
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