We Can Help You Understand the New Section 179 and Bonus Depreciation Updates.
Section 179 Deduction for 2018 increases to $1,000,000
Businesses purchasing, financing or leasing (Capital or $1.00 types) new and used equipment in 2018 can elect to expense up to $1,000,000 under 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.
100% Bonus Depreciation
The Bonus Depreciation deduction has increased to 100%. Businesses of all sizes can depreciate 100% of the cost of new and used acquired 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.
Example: $250,000 Total Equipment Cost
|2018 Section 179 Deduction||$250,000|
|Tax Savings (89,543 x 21% Tax Rate)||$52,500|
|Equip Cost After Savings (Equip Cost-Tax Savings)||$197,500|
The information presented on this page is not specific legal, tax, or accounting advice. Consult an accountant or other tax professional to confirm your eligibility for tax incentives and benefits.