WHat does this mean for your BUsiness?
Section 179 of the IRS tax code allows businesses to deduct the FULL PURCHASE PRICE of qualifying equipment and/or software purchased or financed during the tax year.
H.R.1.’s Section 179 was signed into law in January of 2018 and was enacted to help small businesses lessen their taxable income.
If you’ve been thinking about purchasing hardware or software for your business, it would be wise to do so before the end of the year.
That means 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. One of the best ways to invest into growth is through technology.
This deduction is good on new and used equipment, as well as off-the-shelf software but the equipment must be financed/purchased and put into service by the end of the day 12/31/2018. Yes, that’s correct, business owners can take advantage of deductions even if the items are financed or leased.
So if you’re planning to add some equipment for your business – think about equipment that promote productivity and improve efficiency. Invest in your business to promote growth.
If you have any questions on how the Magnitech Team can help you, Contact Us!