Unless you are a tax accountant, taxes can be intimidating. As a local commercial roofing company in Springfield, MA, we can honestly say tax season is not our favorite time of year either. When you hear a phrase like “Section 179 of the IRS tax code,” your immediate reaction may be to back away slowly. But as complicated as it may sound, if you don’t take advantage of section 179, you may be losing out on a million dollars—literally.
While the Section 179 Deduction may sound scary, it’s actually not. The Section 179 Deduction is a tax break for business owners that was designed to encourage companies to invest in their own companies by purchasing equipment or improvements for their business, which helps boost the economy as a whole. Although the Section 179 Deduction helps large corporations, it was specifically designed by the government to benefit small business owners. We thought you might be interested!
What exactly is the Section 179 Deduction?
The Section 179 Deduction is a tax deduction for businesses. It allows businesses to deduct the cost of equipment purchases or improvements to their commercial buildings and/or properties from their total gross income for the year when filing their taxes. The logic behind this tax deduction is that the more you invest in your business, the more you will be helping to improve the economy.
What’s new in 2018?
The Section 179 Deduction is not a new tax deduction, but there are some exciting changes coming to this tax deduction for 2018. The deduction limit in 2017 was $510,000, which is not bad by any means. In 2018, however, businesses can deduct up to $1,000,000 spent on equipment or improvements! There is also a spending limit for Section 179 purchases, which 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. In 2017, the deduction limit was $2,030,000, but for 2018 the limit has been increased to $2,500,000.
What are qualifying purchases?
Depreciable tangible property that is either bought or leased for use for your business as well as improvements to your commercial buildings/property all count as qualifying Section 179 Deductions. Some examples would include computer software, vehicles and even roofing repairs. While there are some restrictions, you’ll find that most equipment purchases and improvements made to your commercial property are deductible under the Section 179 Deduction.
If you’re thinking of making improvements to your company or commercial property, 2018 is the year to do it. The specifics of the Section 179 Deduction is liable to change from year to year. If you want to take advantage of this deduction, the time is now. If you’re looking to make improvements to your commercial building in 2018, R & H Roofing can help. We are a local commercial roofing company in Springfield, MA and we can help you take advantage of the Section 179 Deduction in 2018. To learn more about our services, call us today!
Categorised in: Commercial Roofing Company
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