Do you schedule regular meetings with your accountant throughout the year? If not, you should! I like to meet with my account once in July, once in October and one more time in early December to plan ahead for my current year tax returns. Below is a little more information on Section 179 Tax Deductions that I like to take advantage of when possible.
2017 Deduction Limit = $510,000
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 = $2,030,000
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 $2.5 million 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 Note> Bonus Depreciation is available for new equipment only; used equipment qualifies for Section 179 Deduction, but does not qualify for Bonus Depreciation
I always recommend building a relationship and consulting with a licensed accountant when making any decisions regarding company or personal tax returns. Now go finish off 2017 strong!