If you’ve owned a business for any number of years, you’ve probably heard of Section 179. In past Section 179 referred to as the “SUV loophole” or the “Hummer deduction” because these vehicles used to qualify for a business deduction, so executives would by them for the “company” and write them off. Regulations have tightened up a bit since then, but the basic premise remains.
Section 179 alleviates the burden of acquiring new equipment or technologies by allowing businesses to write off the full amount of the purchase in for the tax calendar year the equipment was purchased. This is especially beneficial for businesses who are currently financing equipment through a $1 Buy Out or IPA, because they can write off the full total of the amount financed, even if they’re only making monthly payments.
This year, the deduction limit is set at a staggering $500,000. If your business has purchased, or financed, qualifying equipment or technology totaling LESS THAN $2 million, then you most likely qualify for this massive write off. That is, of course, you can reasonably prove that over 50% of the use of this equipment is for business only purchases.
If you have made a purchase this year, and it fits the requirements listed above, be sure to take advantage of this write off! Every year, the requirements change, and the total deduction limit can increase or decrease, so it is important to make sure you capitalize on this opportunity.
If you haven’t had the chance to make a purchase this year because of a constrained budget, don’t worry – we have you covered. When you finance equipment or technology through Blue Street Capital, large purchases can be broken down into small, easy-to-manage, monthly payments suitable for all budgets.You can learn more by clicking here.
There’s only limited days left before 2017’s Section 179 expires, so be sure to act fast! You can read a more comprehensive guide on Section 179 by clicking here.
Here’s an example of how this deduction works.
INTERESTED IN FINANCING SOME NEW TECHNOLOGY FOR YOUR COMPANY?
here’s what you need to do:
1. Determine the technological needs with your IT provider and send us a copy of their quotes.
2. Have a brief conversation with us to understand the project and your business so that we can prepare a solution that best meets your needs.
3. We will send you a formal financing proposal with all the pertinent terms and monthly payment amounts.
4. Sign the proposal and send it in. We will submit the financing documents for your signature and release purchase orders to your vendors.