IRS Section 179 Incentive: An Advantage for SMBs
December 5, 2018
Right now, many companies are worried about balancing their books and planning budgets for 2019. However, all small to mid-size businesses should consider opening their checkbooks to take advantage of the IRS Section 179 tax incentive.
What is Section 179?
According to Section179.org, the IRS Section 179 is an incentive or tax code that allows businesses to deduct the full purchase price of their qualifying equipment and/or software purchased or financed during the tax year. This means business can deduct the full price of the qualified purchase from their gross income. This incentive was designed specifically for small businesses, meant to give them the opportunity to reinvest in their business by upgrading equipment and technology. Key details of the 2018 Section 179 incentive include:
- All equipment must be financed or purchased and put into service before EOD on December 31, 2018
- $2,500,000 spending cap for 2018
- $1,000,000 deduction limit
- 100% bonus depreciation on new equipment
*This bonus depreciation is usually taken after the cap spending is reached.
Based on the spending cap, this incentive was structed for SMBs to be the true benefactor. Businesses can purchase, finance and/or lease new and used equipment up until the end of the year to qualify for Section 179. The list of qualifying equipment includes equipment meant for businesses use such as copiers and printers, computer “off-the-shelf” software, office equipment such as servers, and more.
How can Impact help?
Now is the perfect time to take advantage of the Section 179 incentive before the year ends. As a managed service provider, Impact’s team of expert consultants can offer a customized mix of business solutions to streamline process and increase efficiencies. Impact offers a wide range of equipment that qualifies for this incentive, all bundled with our industry-leading service. With a one source business model, the purchase of equipment includes expert technicians and engineers who guarantee fast, reliable service. Impact’s technicians are required to reach the highest level of manufacturer training and be full-line trained on all devices.
Wondering how much you can save? The Section179 Deduction Calculator can help you realize how much you could save by purchasing and/or leasing equipment before the end of the year.
To learn more about Impact’s equipment and software offerings fill out our demo request form and a local Impact representative will be in touch.