Tag Archives: section 179

Blog, Section 179

Unlocking Your Business Potential with Section 179 in 2023!

section 179

In the world of business, every dollar counts, and one powerful tool at your disposal for maximizing your financial benefits is Section 179. This provision allows you to significantly reduce your taxable income by deducting the full purchase price of qualifying equipment. In 2023, the Section 179 deduction limit is set at $1,160,000, with a cap on equipment purchases at $2,890,000. There is also an 80% Bonus Depreciation, which applies to both new and previously owned equipment as long as it’s “new to you.” 

The Power of Depreciation

2023 features an 80% Bonus Depreciation. This provision allows businesses to benefit from substantial depreciation on their equipment investments. The beauty of it is that you can apply this bonus to not just new equipment but also to previously owned items, as long as they are new to your business. The catch? You need to purchase and put the equipment into service by midnight on December 31, 2023. The clock is ticking, and the tax savings potential is significant. 

Harnessing the Power of Leasing with Section 179

Leasing equipment and software while keeping Section 179 in mind is a winning financial strategy. It offers multiple advantages for your business. You can deduct the full cost of the leased equipment from your taxable income without having to pay the full amount upfront. The savings in taxes could even surpass the lease payments, making Section 179 a tax deduction that genuinely improves your bottom line.

While not all lease types qualify for Section 179, a seasoned expert can help you navigate the complexities and ensure you’re making the most of this opportunity.

Software Matters Too

In the realm of software, there’s a vital distinction to keep in mind. Software subscriptions don’t qualify for Section 179. However, when you invest in software tools like Printerpoint and PaperCut, you can enjoy the benefits of tax deductions while enhancing your business operations. It’s a double win – improving your efficiency and saving on taxes.

Seize the Opportunity Today

In conclusion, Section 179 in 2023 offers an incredible opportunity for businesses to maximize their write-offs and enhance their bottom line. Whether you’re considering purchasing or leasing equipment, this tax provision can boost your cash flow and profits.

Don’t let the clock run out; the December 31, 2023 deadline is fast approaching. To learn more about how you can take full advantage of Section 179 and secure a more financially secure future for your business, call Repro Products today at 770-434-3050.

Blog

Are You Taking Advantage of Section 179 for 2017 Tax Year?

 

Section 179 Tax Deductions Have Been Extended for 2017

A major part of any business strategy is making the right investment choices to position your company for long term success; including choosing the right equipment to push your business in the right direction. However, one of the toughest obstacles facing businesses is finding the capital to pay for that investment.

Consult your tax and financial advisors to review and assess the factors that may apply to your business and tax situation. 

Business owners can take advantage of purchasing equipment and deduct the full purchase price of financed or leased equipment for the current tax year. The equipment must be within specific dollar limits.

What is the Section 179 Tax Deduction?

The Section 179 Tax Deduction of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment that qualifies for the deduction.

Major expenses typically are required to be depreciated over a term of years to account for what is known as the “useful life of the purchase” as dictated by the IRS. However, with the Section 179 tax deduction, business owners can elect to immediately expense the full purchase price of the equipment.

For example, if you purchase equipment for $50,000, you would typically write it off a little at a time through depreciation. Such as, $10,000 per year for say five years. However, most businesses would prefer to write off the entire equipment purchase price for the year they purchased it. This makes it more attractive to purchase more equipment when needed, instead of carrying over the purchase amount minus depreciation.

 

What Purchases qualify for Section 179 Deductions?

If you’re interested in taking advantage of the tax deductions this year, take a look at some of the purchases that would qualify for the Section 179 deductions:

Most tangible personal property for business use, such as:

 

When Can You Elect to Use the Section 179 Deduction?

You are eligible to take advantage of the Section 179 tax deduction for the tax year in which you placed the purchase(s) in service. For example, if you purchase a HP PageWide XL 8000 Printer and place the equipment into service by December 31, 2017, then you would be able to take advantage of the Section 179 deduction when you file your 2017 tax return.

To better understand Section 179 for 2017, visit Section179.org.

 

Need help selecting the right investment for your business?

Your Repro Products Business Development Manager can help you determine a technology investment strategy which will give your business a competitive advantage. Simply visit Repro Products, email sales@reproproducts.com or call 770.434.3050 to begin maximizing your write-offs today.

 

For More Information and Section 179 References:

See below for more helpful articles with expert information on Section 179, and be sure to speak with your financial and tax professional about what impacts these deductions can have on your business.