Have you been considering making a new equipment purchase?
Under the “Protecting Americans from Tax Hikes Act of 2015” up to $500,000 of qualifying new or used equipment (including tube benders) costs may be immediately expensed. In addition, Section 179 is now a permanent deduction at the $500,000 level.
If a business’ total qualifying equipment purchases exceed $2 million in a given year, the Section 179 deduction will begin to phase out dollar for dollar. Section 179 maximums will be indexed for inflation in $10,000 increments for future years.
Bonus depreciation has also been extended through the year 2019. In 2016 and 2017 businesses will be able to depreciate an additional 50% of “new equipment only purchases”, once the Section 179 deduction has been exhausted. The bonus depreciation amount will be reduced to 40% in 2018, and reduced to 30% in 2019.
That means that 2016 is the perfect time for a new equipment purchase!
Contact us to learn more!
Disclaimer – Information provided in this article is for illustrative purposes only. ACEL Lease is not a tax advisor and offers no tax advice. Please consult with a qualified tax professional concerning you specific tax situation.