What is the Section 179 Tax Deduction for 2018?
Simply put, Section 179 is part of the IRS tax code that allows businesses to deduct up to the full purchase price of any qualifying equipment and/or software that has been purchased or financed during the tax year, 2018. This part of the IRS tax code was crafted with small businesses in mind, but larger businesses can also benefit from this. If you purchase, or lease, a piece of qualifying equipment for you business, the full purchase price can de deducted from your gross income. If you’re curious how much your business can deduct specifically, speak with our finance department.
How Does Section 179 Work?
What Section 179 allows business to do is simple: It allows businesses to write off equipment purchases in the same tax year they are purchased. Rather than paying the equipment off year over year, this program allows Memphis area businesses to buy and write off equipment within the same tax year. With this deduction, businesses can purchase necessary equipment when they first need it, without having to worry about paying it off over time.
Are There Limits to Section 179?
Yes. There are specific limits for the amount of purchased equipment, total amount written off, a limit to when the dollar-for-dollar deduction goes away, and a limit for when the entire deduction goes away. These limits are as follows:
- Total Amount Written Off Limit: $1,000,000
- Total Amount of Equipment Purchased: $2,500,000
- Entire Deduction Goes Away: $3,500,000
The deduction, on a dollar-for-dollar scale, starts to slip away after $2,500,000 is spent by an individual business.
Who Qualifies for Section 179?
Any and all businesses that either lease, purchase, or finance new or used business equipment during the 2018 tax year qualify, so long as they don’t spend more than $3,500,000. Business-use vehicles, as well as most software products, qualify for the deduction. Some restrictions do apply, however, so visit the Section 179 website for additional information. For a list of qualifying equipment, please visit this page.
Learn How Much You Qualify for at Collierville Chrysler Dodge Jeep Ram
Unlike Bonus Depreciation, which is meant for larger businesses, Section 179 allows small-to-mid size businesses benefit from a helpful deduction. To learn more about this process, or to have any questions answered, simply contact us online, visit us in Collierville, or call us at 901-854-5337.
More From Collierville Chrysler Dodge Jeep Ram
When properly equipped, the 2019 Jeep Wrangler towing capacity reaches an impressive 3,500 pounds. Whether you select the 2.0L turbocharged engine or the 3.6L Pentastar V6 you can expect the same level of towing power. That’s enough to handle a small camper trailer for outdoor adventures near Memphis. Explore the towing capabilities of this new…
The 2019 Jeep Wrangler is available in five different model configurations, affording Memphis drivers the flexibility and freedom they need to take on the journey ahead. Leave no trail untracked with the off-roading Rubicon, or enjoy all of today’s latest connectivity features in the Wrangler. No matter which you choose, there is something for everyone…
The Jeep Wrangler is an iconic, off-roading SUV that repeatedly brings Memphis drivers everything they need to blaze a new trail in comfort and style. The 2019 Jeep Wrangler interior upholds that tradition by combining thoughtful features and helpful amenities throughout the cabin, making every journey fun and easy. Learn more about what’s inside with…