Section 179 deduction limit is $500,000, and the phase-out limit is $2 million. As you probably know, the previous deduction limit was $25,000. The Section 179 tax deduction applies to many types of new and used equipment, but we recommend that you consult with your tax adviser or business accountant prior to making a purchase. Eligible equipment needs to be purchased and/or leased, and put into service by 12/31/2017, to qualify for the Section 179 tax deduction, so time is running out. This Axe Business Funding blog post has more information about Section 179.
The bill permanently expands the Section 179 deduction limit; it also indexes them for inflation. As mentioned earlier, the new deduction limit is $500,000, and the spending cap on qualifying equipment purchases is $2 million. Without this generous extension, the limit would have remained $25,000 and the phase-out amount $200,000. In addition, the bill allows businesses to depreciate 50% of the cost of eligible equipment that is bought in 2017 and 2018. In 2019 and 2020, the depreciation amount will be 40%.
Do Some Last-Minute Shopping
Are you in the market for some new or used business equipment? If so, there is still time to acquire it and take advantage of the Section 179 deduction. You will just need to put your equipment into service on or before December 31, 2017. If you don’t want to use your capital or credit line for a last-minute equipment purchase, consider an equipment lease/financing with Axe Business Funding. We can provide you with up to $150,000 to finance equipment quickly and with minimal paperwork. Get started now by submitting a one-page application directly through our website.