Take Advantage of Section 179

Calculate your own deduction.

Calculate

Section 179 First Year Write-Off:

50% Bonus Depreciation:

(On any remaining amount above $500,000)

Normal First Year Depreciation:

(Depreciation calculated at 5 years = 20%)

Total First Year Deduction:

(Add Section 179 Deduction, Bonus Depreciation and First Year Depreciation)

Tax Savings on Equipment Purchase:

(Assuming a 35% tax bracket)

Lowered Cost of Equipment after Tax Savings:

IRS Section 179

  • The deduction limit for Section 179 is now $500,000
  • The Section 179 Deduction threshold for total amount of equipment that can be purchased is now $2,000,000
  • Most new and used equipment, as well as some software, qualify for the Section 179 Deduction
  • 50% bonus depreciation has been reinstated for the tax year 2016 and extended through 2019.
    • You can deduct an additional 50% of the amount over $500,000 in addition to your standard depreciation deduction. This applies to equipment acquired and put into service during 2016 and 2017. Then bonus depreciation will phase down to 40% in 2018 and 30% in 2019.
  • When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation

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Credit & equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section #179 depreciation schedule which allows rapid first year depreciation of certain assets acquired. The amount of previous depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax adviser or accountant for additional information. Equipment must be purchased and placed in service by 12/31/2017.

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