With 2017 coming to a close in just a few weeks, you still have time to save thousands of dollars on your 2017 taxes. How, you may ask? With Section 179!
So what is Section 179?
“Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.”Section179.org
This allows you to receive a deduction without incurring a cash cost. Typically, you would depreciate new equipment slowly, such as washers and dryers, over 5 years. Section 179 allows you to depreciate the entire value the first year and receive all the benefits immediately. You can even finance your new laundry equipment purchase and still qualify. For 2017, the deduction limit is $510,000! The spending cap to participate is $2,030,000.