VERMEER NORTHEAST CAN HELP YOU UNDERSTAND THE 2018 SECTION 179 DEDUCTION
In the past, Section 179 has gone hand-in-hand with bonus depreciation, both valuable tax incentives. This year, changes have been made to Section 179 and bonus depreciation. With the changes, the two aren’t used together, but rather can be looked at as separate opportunities – both valuable opportunities, depending on each company’s unique needs. Please note that all business owners should consult their accountant or trusted tax advisor before deciding to make purchases and take advantage of the bonus depreciation incentive.
Section 179 Deduction for 2018 increases to $1,000,000.00
Businesses purchasing, financing, or leasing new and used equipment in 2018 can elect to expense up to $1,000,000.00 under the IRS Section 179. The Section 179 rules are designed for small companies, so the write off is reduced dollar-for-dollar as total equipment purchases for the year exceed $2,500,000.00.
100% Bonus Depreciation on New and Used
The Bonus Depreciation deduction has increased to 100%. Businesses of all sizes can depreciate 100% of the cost of new and used aquired equipment ( on an adjusted basis) retroactive to Sept. 27,2017 and good thru 2022. Unlike Section 179 there is no cap on the amount that can be depreciated under this provision
Did you know your rental unit could be fully depreciated on this year’s tax return if you convert to a purchase finance agreement?
New units on rental are eligible for sect.179 depreciation for up to $1,000,000.00 in equipment purchases, if moved from rental to purchase by year end.
Vermeer Northeast is your Full-Service Equipment Dealership Covering the Northeast. Our experts will not only help you find the right piece of equipment, they’ll also offer the service and support that’s still needed after the sale and bonus depreciation has been applied. Contact your territory manager today!