It’s a great time to buy a saw!
Section 179 Federal Income Tax Deduction: For 2016 the Federal Section 179 deduction has been restored to $500,000. This deduction allows a company to deduct the first $500,000 of equipment (Section 179 Property) purchased in 2016 from their taxable income. For companies purchasing (or leasing with a $1 or $101 buyout) up to $2,000,000 of equipment, this deduction is available in full. It then phases out on a dollar-for-dollar basis for amounts over $2 million. Qualifying purchases you made in 2016 can now be eligible for the new, higher deduction. $1 buyout leases qualify!
50% BONUS DEPRECIATION!
In addition to the $500,000 write-off, companies can take 50% bonus depreciation on the adjusted basis of their qualified equipment purchased in 2016.
In addition to the $500,000 write-off, companies may be eligible to deduct federal depreciation on the adjusted basis of their qualified equipment, state depreciation, local tax incentives and interest expenses.
Always check with your accountant or financial adviser to verify tax or accounting issues and any tax benefits.
Tax laws are subject to change at any time and their application is highly dependent upon the unique facts and circumstances of any particular taxpayer. The information on this page is offered as general guidance and is not intended as specific legal, tax or accounting advice. These calculations are only estimates and everyone’s tax situation is different.
Article from: Intech Funding