Section 179 Information

Section 179 Improvements

NEWS ALERT: SECTION 179 INCREASED TO ONE MILLION FOR 2018

Jan 2, 2018 – With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.

Further, the bonus depreciation is 100% and is made retroactive to 9/27/2017 and good through 2022. The bonus depreciation also now includes used equipment.

 

Section 179 Highlights

2018 Deduction Limit = $1,000,000 (one million dollars)

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for the tax year 2018, the equipment must be financed/purchased and put into service between January 1, 2018, and the end of the day on December 31, 2018.

2018 Spending Cap on equipment purchases = $2,500,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3.5 million on equipment won’t get the deduction.)

Bonus Depreciation: 100% for 2018
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Bonus Depreciation is available for new and used equipment.