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Informative topics to help small businesses thrive

Fall is in the air and so is Section 179

November 13, 2019  - Tips for Small Business
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The temperatures have dropped, the leaves are turning and most of the country has fallen back one hour. This can only mean one thing: The end of 2019 is near.

This is a good time to review your company’s position with your tax advisor and to think about taking advantage of Section 179 tax incentives which may make year-end purchases worthwhile and affordable.

Section 179 allows eligible businesses to accelerate depreciation deductions for qualifying purchases that include equipment, office furniture, commercial vehicles and technology. For 2019, you may deduct up to $1,020,000 with a dollar-for-dollar phase out for purchases over $2.55 million. The 100% bonus deprecation is also still in place, so you can take full depreciation on qualifying assets.

Watch an overview from this informative video about the features and benefits of Section 179.

Here are some key points about the 2019 Section 179 tax deduction:

  • Visit IRS.gov to view form instructions for form 4562, which must be completed to obtain the deduction, outlines the range of purchases that qualify.
  • Most tangible goods for company-use qualify for the deduction. This includes vehicles for business use as well as office furniture. Your tax advisor can outline any restrictions that may apply.
  • Both new and used equipment (if the used equipment is “new” for you) qualifies for the Section 179 Deduction (as long as the used equipment is “new to you”).
  • The bonus depreciation deduction covers used as well as new equipment.
  • The purchases you apply Section 179 deductions to (i.e., equipment, vehicle(s) and/or other qualifying items) must be used for business purposes more than 50% of the time.

To get an idea of the savings you may realize from purchases, enter the total cost of qualifying items into Ascentium’s Section 179 calculator and click on “Show Savings.” The result will show how much you may save plus the net cost of your purchases after the deduction is taken. You will want to verify the specific impact of Section 179 with your tax advisor to ensure how your company can benefit from this tax incentive. 

Ascentium Capital is here to help your company grow. We can develop unique financing structures and, depending on how you finance the items, your purchases may be deducted enabling you to save on your company's tax burden. So, make your list, check it twice and make those purchases before December 31st!

Do you have a good understanding on how Section 179 may help your company? Before you meet with your tax advisor, take this quiz to test your knowledge:

click on this button and take a quiz on section 179

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Ascentium Capital wants to help you finish your year strong. Pairing our flexible financing options with Section 179 tax deductions may enable you to reduce up-front costs on year-end purchases that qualify for this tax incentive.

Fill out this quick online form and a finance manager will contact you to discuss your options!

Not intended as tax advice. Please speak with your company's tax advisor regarding your business and its unique tax situation.

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