Take advantage of the IRS Section 179 Tax Code before the year ends!
What's Section 179? It's a section of the tax code that allows accelerated depreciation on certain types of business purchases. Section 179 is the most used tool for last minute purchasing near yearend to help mitigate your upcoming tax liability for large corporations and small businesses.
Section 179 does not require purchasing with cash. Equipment, vehicles, and other eligible items can be financed and still depreciated in full or at 50% under the available bonus depreciation options depending on the type of item.
What this means for your business is that you can finance a larger purchase now, take all or a substantial part of that as depreciation, and consequently receive significant tax breaks now on items you get to pay for later. This makes section 179 critical for businesses with tight or seasonal cashflow, like HVAC businesses or businesses that carry large AR balances.
If you've not had a yearend meeting with an accountant to review section 179 and other yearend items to consider for your business, give us a call. Consultations are free and we would love to meet with you.