Take advantage of IRS Section 179.

  • The deduction limit for Section 179 is now $1,000,000
  • The 2018 Section 179 Deduction threshold for total amount of equipment that can be purchased is now $2,500,000
  • Most new and used equipment, as well as some software, qualify for the Section 179 Deduction
  • 100% bonus depreciation for 2018 new and used equipment allowed
    • Under Modified Accelerated Cost Recovery System (MACRS) Bonus Depreciation has increased first-year depreciation deduction to 100% (vs. 50%) of the adjusted gross basis of qualified property. This goes into effect for assets placed in service after September 27, 2017 and before January 1, 2023. Another significant change under the new tax law is the ability to use the bonus depreciation for purchases of new or used property. Under prior law, you could only use bonus depreciation for new property.
  • When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation

 

Calculate Your Deduction

Cost of Equipment:

CALCULATE


Section 179 First Year Write-Off:

0

100% Bonus Depreciation:

(On any remaining amount above $1,000,000)

0

Normal First Year Depreciation:

(Depreciation calculated at 5 years = 20%)

0

Total First Year Deduction:

(Add Section 179 Deduction, Bonus
Depreciation and First Year Depreciation)

0

Tax Savings on Equipment Purchase:

(Assuming a 35% tax bracket)

0

Lowered Cost of Equipment after Tax Savings:

$0

 

 

Credit & equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section 179 depreciation schedule which allows rapid first year depreciation of certain assets acquired. The amount of previous depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax adviser or accountant for additional information. Equipment must be purchased and placed in service by 12/31/18.