Section 179 of the IRS tax code allows businesses to deduct the purchase price of qualifying equipment and/or software purchased or financed during the tax year.
This means that if you buy or finance a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE (up to $510,000) from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Equipment must be purchased and placed in service by 12/31/17.
Many business owners are unaware that the acquisition of laser or welding equipment under a $1 purchase option lease or Equipment Finance Agreement (EFA) qualifies for the tax break provided under Section 179 of the Internal Revenue Code. Subject to limitations, Section 179 allows taxpayers to take an outright deduction equal to the full purchase price of qualifying laser equipment purchased during the tax year, and a $1 purchase option lease or EFA is considered a purchase under the Internal Revenue Code.
Contact your tax adviser to confirm how you may benefit from this tax break.
FINANCED ITEM TAX DEDUCTION TAX SAVINGS*
$25,000 $25,000 $8,750
$55,000 $55,000 $19,250
To calculate your savings CLICK HERE