As reported by The Balance “Section 179 of the IRS Code was enacted to help small businesses by allowing them to take a depreciation deduction for certain assets (capital expenditures) in year one, rather than over a longer period of time. Taking a deduction on an asset in its first year is called a Section 179 deduction.”
Here is an example of what the numbers look like:
However, 2016 could be the last year to capitalize on these substantial write-offs. According to the tax plan published on Donald Trump,
“The Trump Plan will lower the business tax rate from 35% to 15%, and eliminate the corporate alternative minimum tax.”
This means the tax savings in our example listed above will go from $17,500 to only $7,500.
Considering buying new computers or upgrading your office equipment? The time to act is now. If you do not have available cash to make the purchase before year-end, Provider Web Capital can help with financing. Apply now and take advantage of the 179 deduction while there is still time.