Section 179 Federal Income Tax Deduction: $500,000 Write-Off
This deduction allows a company to deduct the first $500,000 of equipment (Section 179 Property) purchased in 2017 from their taxable income. For companies purchasing (or leasing with a $1 or $101 buyout) up to $2,000,000 of equipment, this deduction is available in full. It then phases out on a dollar-for-dollar basis for amounts over $2 million.
50% Bonus Depreciation
In addition to the $500,000 write-off, companies can take 50% bonus depreciation on the adjusted basis of their qualified equipment purchased in 2017. Equipment must be purchased and placed into service on or before December 31, 2017. Then bonus depreciation will phase down to 40% in 2018 and 30% in 2019.
Now is the time to invest in new equipment! Always check with your accountant to confirm eligibility for tax benefits.