Section 179: The Tax Break Every Business Needs to Know

Posted by Shari Gardner on December 5, 2016

Section 179

Register now for a complimentary, Deltek webinar on Section 179 with tax expert!

Section 179 – What Business Owners Need to Know

As a business owner you know the importance of taking advantage of every tax break available to you. Unfortunately, many businesses overlook the significant benefits of Section 179. Last year, Congress voted to permanently raise the Section 179 depreciation deduction to $500,000.  This provides a great opportunity to invest in your business while significantly lowering your 2016 tax burden. 

What’s really great about Section 179 is that its original intent was to help businesses grow.  As part of the Stimulus Act of 2008, Section 179 was designed to encourage businesses to invest in equipment and software to improve operations. <

Is my business too big to benefit? When Congress voted to permanently increase the deduction to $500,000 in Dec 2015, they also voted to extend and enhance other aspects of the Section 179 tax code. These changes were included to benefit not just small businesses, but to encourage businesses of all sizes to invest in new equipment and software to grow.  By making the Section 179 deduction increase permanent, our government is acknowledging that businesses must make crucial investments in order to expand. This deduction is intended to help you invest in your business while also helping lower your firm’s tax burden for the year.

Section 179 can even be beneficial for a cash strapped company. You may consider an equipment financing agreement which will allow you to take full advantage of the tax deduction while covering the cost of the equipment or software purchase at a later date. Section 179 allows your business to take the full deduction in the year the equipment is purchased, as opposed to a multi-year depreciation schedule. Leveraging a financing agreement to take advantage of these tax savings may be beneficial for your business.p

So what’s the catch?  

Good news! There is no catch. However, if you want to take this deduction in the 2016 tax year, any equipment or software you purchase or lease must be purchased and put into use by December 31st, 2016.  

The Section 179 website is a great resource that can answer many of the questions you may have.  The site also contains a Section 179 deduction calculator to help you evaluate various purchase or lease scenarios and estimate your tax savings. The 2016 calculator has been designed to reflect the current year’s Section 179 limits and all amendments as well as bonus depreciation.  

How to Get the Facts Fast on Section 179!

We’re quickly approaching the December 31st deadline, so don’t procrastinate.  If you want to learn more about Section 179, here’s a way to quickly come up to speed:

 Register for a complimentary, on-demand webinar Deltek is hosting with tax expert, Thomas Christiana, from Aronson LLC, a leading tax and consulting provider. 

In this webinar, you’ll learn what Section 179 is, how it works and what deductions you qualify for in 2016.  Thomas will be available to answer any questions participants may have in real-time.

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Webinar: Taking Your Full Deduction with Section 179

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We hope you’ll join us. This is a great opportunity for you to get the facts fast on Section 179 - from a tax expert with a reputation for excellence!  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.