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Take Advantage of the 2017 Section 179 Tax Deduction!

November 21, 2017 News

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment (e.g., a Stratasys 3D printer) and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

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

The above is an overall, “simplified” view of the Section 179 Deduction for 2017. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read the entire website carefully.

Example of Section 179 at work during this 2017 tax year.

Check out the Section 179 Deduction Calculator for 2017 to help you figure out how much you can save!

Posted by Heather Adams