Are you considering whether or not to purchase equipment for your business? Keep reading to find out how to save your business a great deal of money.
In December 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 (PATH), and it includes a permanent extension of the Section 179 tax deduction. The new Section 179 deduction limit is $500,000, and the phase-out limit is $2 million. As you probably know, the previous deduction limit was $25,000. The Section 179 tax deduction applies to many types of new and used equipment, but we recommend that you consult with your tax advisor or business accountant prior to making a purchase.
Section 179 Permanent Expansion
The newly approved bill permanently expands the Section 179 deduction limit; it also indexes them for inflation. As mentioned earlier, the new deduction limit is $500,000, and the spending cap on qualifying equipment purchases is $2 million. Without this generous extension, the limit would have remained $25,000 and the phase-out amount $200,000. In addition, the bill allows businesses to depreciate 50% of the cost of eligible equipment that is bought in 2015, 2016 and 2017. In 2018 and 2019, the depreciation amount will be 40%.
Use Section 179 to Grow Your Business Faster
Are you in the market for some new or used business equipment? 2016 can be the year that you put your growth or remodel plans into action. We can provide you with up to $500,000 to finance equipment quickly and with minimal paperwork. Our credit application only takes a few minutes to fill out, you will get a decision within 4 hours, and you can have funding in as soon as 24 hours. How’s that for fast!? Get started now!