Take advantage of the government stimulus act benefitting business owners. From now until the end of the year, you depreciate up to $500,000 worth of equipment purchases for your business.
Section 179 Tax Deduction Limits for year 2016:
The Section 179 Deduction is now $500,000 for 2016. This means businesses can deduct the full cost of equipment from their 2016 taxes, up to $500,000, with a “total equipment purchased for the year” threshold of $2,000,000. Yes, this is a ROBUST deduction and you should take advantage of it for your 2016 taxes.
A True Small and Medium Businesses Tax Break
Section 179 is squarely aimed at small to medium businesses that purchase anywhere from $100 to $2,000,000 worth of equipment. The full deduction can be claimed until that $2,000,000 number is reached. Once that happens, the deduction decreases on a dollar for dollar basis (when it disappears entirely once $2,500,000 worth of equipment is purchased.)
This makes it a very effective tax deduction for small and medium businesses.