Many businesses look to mitigate what they will owe Uncle Sam come next April. One of the easiest ways for small business to reduce taxable income is the Section 179 deduction. This allows a business to depreciate 100% of the cost of qualified equipment purchases up to $500,000. This is typically more equipment than a small business will purchase in a year.
So how does this help you? Let’s look at an example:
|Profit for 2017:||$275,000.00|
|Taxable Profit for 2017:||$125,000.00|
If you are in the 20% tax bracket, this saves $30,000.00 in taxes ($150,000 * 20%).**
Contact us for more information on how Section 179 can be a useful tool for your business.
A good resource for information on Section 179 can be found at www.section179.org
To calculate potential tax savings you can use a calculator at https://www.calcxml.com/calculators/section-179-deduction
** This is strictly an example. Consulate your tax advisor for your exact savings and to find out if you qualify.