Yup, it must be 4th quarter. Because I’m talking about section 179. Section 179 is one of the BEST way to save CASH & also most dismissed / overlooked tax code that YOU should be taking advantage of. It literary means you get estimated 35% Cash Back.
Section 179 is a tax code that can be used to get tax break on your business after purchasing an equipment for your business use. Instead of usual over time, depreciation, you are able to write off 100% purchase price of the equipment (called Bonus Depreciation) on the 1st year you purchase the equipment = aka, This Year!
Assuming most common 35% tax bracket, that literately means 35% Cash Back when the tax filing season come around.
Using ZEN-7000 Brand New C-Arm as an example which sells for $89,750 including 5 Year Limited Warranty, it’d qualify for $31,412.50 Cash Savings, which makes the net equipment cost $58,337.50.
Is Section 179 a new thing in 2019?
Technically no. Section 179 has been around for a while and it always has been one of the best tool for small business due to its deduction limit =1 Million Dollar for 2019
Why is it important that I take advantage of this now?
Simply put, not taking full advantage of section 179 when you have a need for an equipment is like intentionally waiting for a sale to be over before making a purchase. And if you ask me, I like getting discount on things I need, especially if that discount allow me to acquire better, newer system.
There’s always next year.
Yes, 2020 will be coming and some sort of section 179 will continue. But this is one of those code that can change any time. And even if it doesn’t, what if you end up needing to buy a few other equipment next year that’s more than deduction limit? Remember, once you go over the deduction limit, you cannot get any more deduction… and you lose out on the potential Cash Savings.
Not sure yet? Here’s how you can decide:
- Are you considering getting a new C-Arm in the near future?
[Yes = Continue below | No = Maybe this is not for you]
- Have you already made LARGE purchases this year exceeding 1 Million Dollar deduction limit?
[Yes = Maybe you should wait until next year | No = Continue Below]
- Are you expected to pay at least 30K in tax payment for this year?
[Yes = Time to make that purchase before it’s too late! | No = Section 179 may not apply to you this year. Maybe getting a new equipment can help be more profitable?]
Want full details & calculator for section 179? Visit this page.
Have you taken advantage of section 179 before? Have you experienced any hiccups? Have questions? Share below!