Section 179: How to Take Your Full Deduction

Posted by Deltek on November 2, 2016

Section 179

The Section 179 IRS tax code may sound complicated but it’s actually quite easy to understand and well worth your while to do so. In short, Section 179 allows businesses of all sizes working in the private and public sector to depreciate the entire cost of software and equipment in the year it is purchased as opposed to depreciating the cost over the lifetime of the asset. As a result, it’s a great incentive for a profitable business to minimize tax liability while reinvesting in the company. 

Section 179 deduction limits have varied over the years, meaning businesses often had to wait until the end of the year to determine whether if Congress would raise the deduction to a level worth utilizing. This ended in late 2015, when the PATH Act permanently raised Section 179 deduction limits to $500,000 until further notice. This act also reinstated the 50% Bonus Depreciation on new purchases, and included escalators for inflation.

So what does this mean for you?

If you’re thinking of a purchasing new software – now’s the time to do it!  Qualifying software and equipment must be purchased and put into use before December 31st, 2016.

To help you understand the ins and outs of Section 179, Deltek is hosting a live webinar with tax expert, Thomas Christiana, from Aronson, LLC, a leading tax and consulting provider.

Join us to learn more about Section 179 and how you can take your full deduction this year.  In this webinar, Thomas will explain in detail what Section 179 is, how it works and what deductions you qualify for in 2016.  Thomas will be available to answer any questions you may have in real-time. So even if you’ve started to look into Section 179 - this is a great opportunity to get insight and free advice from a reputable tax expert!

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Webinar: Taking Your Full Deduction with Section 179

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Small and Medium Sized Businesses – why should I attend?

If you’re a small or medium business consider this.  Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small businesses. Although large businesses also benefit from Section 179 and Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses. Millions of small and medium sized businesses are taking action and getting real benefits. Be sure to take the appropriate action now so you can take your full 2016 deduction.

Large Businesses – why should I attend?

If you’re a large business and spend more than the Section 179 Spending Cap, knowing how the bonus depreciation works will be especially relevant to you.

We think you’ll enjoy this free information packed webinar and invite you to attend!