You May Be Entitled To More Than You Realize Come Tax Time.
If you are a small business owner with lots of equipment, then the sections 179 deductible may be able to help you save on your income tax. Section 179 of the IRS tax code states that businesses are allowed to deduct the cost of their equipment (hardware/software) purchased in the tax year. This is designed to encourage companies to invest in themselves and buy their own equipment. What this means is that you can claim all of your equipment on your taxes and get the money back with your income tax!
There are some limitations however;
- Deduction limit for 2015 is $25,000
- Equipment Cap is $200,000 and then your deductible is reduced dollar by dollar
These limits make the sections 179 ideal for small to medium sized businesses whose spending doesn’t usually exceed those amounts. Only businesses that purchase finance or lease $200,000 or less are eligible for this deductible. The equipment must have been put into business use between January 1st and December 31st of 2015. Eligible item include but are not limited to;
- Company Vehicles (limitations apply)
- Office Equipment
- Appendages Company Building
Millions of small business are taking advantage of the section 179 deductible to increase the value and profitability of the business. Section 179 is one of the few policies of its kind – deductions that are designed to give business owners initiative to improve their company.
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