Commercial Equipment FinancingUnited States Capital Corporation - SECTION 179 BUSINESS TAX BENEFIT FOR 2017

Put Money in Your Pocket with Section 179 Qualified Financing!

312-675-6063 sales@uscapcorp.com

 

Section 179


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WHAT IS THE SECTION 179 BENEFIT?

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.)

2017 Deduction Limit = $500,000

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2017, the equipment must be financed/purchased and put into service between January 1, 2017 and the end of the day on December 31, 2017.

2017 Spending Cap on equipment purchases = $2,000,000

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than the maximum amount on equipment won't get the deduction.)

Bonus Depreciation: 50% for 2017

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Please noteā€¦ Bonus Depreciation is available for new equipment only; used equipment qualifies for Section 179 Deduction, but does not qualify for Bonus Depreciation.

What Types Of Equipment Qualify in 2017?

Most new/used tangible business equipment qualifies including off the shelf software and business use vehicles (with some restrictions). Industries include medical, hospitality, laundry, construction, technology, manufacturing and transportation.

Who Qualifies for Section 179?

All businesses that purchase, finance and/or lease less than $2,000,000 in new or used business equipment during tax year 2017 should qualify for the Section 179 Deduction.

What's the difference between Section 179 and Bonus Depreciation?

Bonus depreciation is offered some years, and some years it isn't. Right now in 2017, it's being offered at 50%.

The most important difference is both new and used equipment qualify for the Section 179 Deduction (as long as the used equipment is "new to you"), while Bonus Depreciation covers new equipment only.

Bonus Depreciation is useful to very large businesses spending more than the Section 179 Spending Cap (currently $2,000,000) on new capital equipment. Also, businesses with a net loss are still qualified to deduct some of the cost of new equipment and carry-forward the loss.

When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business had no taxable profit, because the unprofitable business is allowed to carry the loss forward to future years.

When Do I Have To Do This By? MIDNIGHT 12/31/2017

If you wish to deduct the full price of your equipment from your 2017 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.

If you are selling equipment, remind your customers of the possible savings to them. If you are buying equipment, check with your financial advisor to learn if Section 179 can be a benefit to you.

For More Information

financing@uscapcorp.com
815-477-1600
uscapcorp.com

United States Capital Corporation
Email: apps@uscapcorp.com
Phone: +1 312-675-6063
Fax: +1 312-264-0343