2011 is a banner year for Section 179. That's because legislation passed during the latter half of 2010 expanded and enhanced Section 179 and Bonus Depreciation to new, unseen limits.
The total deduction was doubled, to $500,000, and the total limit of equipment purchased was raised to 2,000,000. These are HUGE increases, and essentially is the government's "go-ahead" to businesses in regards to purchasing new equipment and software. And it's welcome news, because after several years of holding back, many businesses need new equipment.
Section 179 provides your business with substantial, immediate tax relief in 2011.
But did you know that combined with 'Section 179 Qualified Financing', it literally deposits thousands of dollars in your bank account?
This is it – this is the only government help that your business is going to get!
This means if you were waiting to purchase new equipment and/or software, 2011 is the year you've been waiting for. In plain terms, the tax savings can be substantial.
And to help you see how much you can save, we've provided the following 2011 Section 179 Calculator. This calculator is fully updated with the current limits, and can give you a clear picture of just how much Section 179 can save you this year. Go ahead ?check it out and see if you like the numbers.
A substantial tax deduction is great. But your bottom line will be even better with the right equipment financing. That's because the easy-approval, low-rate financing we offer allows you to take full advantage of Section 179, while still keeping your cash and assets in-house. We'll provide you with a favorable Equipment Lease or low rate Equipment Financing Loan, allowing you to get your equipment right now, while also making the balance sheet look great.
And here's the best part – Section 179, combined with equipment financing, might even be profitable to you this year. That's because, in most cases, you will save MORE with the deduction than you pay out in finance payments. This makes financing equipment and using Section 179 a profitable venture (PLUS, you get the new equipment).
Contact Crest Capital for a no-obligation Equipment Lease or Equipment Financing Consultation.
Section 179 is the provision of the US Tax Code that allows businesses to deduct the full purchase price of equipment bought (and put into use) during the 2011 calendar year. Equipment can include production equipment, such as machinery; certain types of vehicles; electronic equipment, like computers and peripherals; software; office equipment / office machines; office furniture and fixtures; and other types of tangible, needed equipment.
There are a few important differences for 2011 that you should be aware of:
Then (2008-2010): Several years ago, Section 179 received an enhancement from the Economic Stimulus Act of 2008. The deduction limits were raised substantially ?all the way to $250,000, and it also installed a "bonus" first year depreciation of 50%. These limits were kept with only small adjustments until late 2010. But in late 2010, H.R. 4853, and H.R. 5297 (the Tax Relief Act and the Jobs Act, respectively) were passed, enhancing Section 179.
Now (2011): These two new acts in late 2010 spelled out Section 179 for 2011 and beyond – Section 179 was greatly enhanced, with the deduction limit doubling to $500,000, and the limit on equipment purchased rose to $2,000,000 (two million dollars!) These are HUGE increases. PLUS, the Bonus Depreciation (for expenditures that exceed the Section 179 cap) is now 100%. Lastly, small businesses that will not be profitable in 2011 can use the 100% Bonus Depreciation (on new equipment only), and carry-forward the loss to future profitable years.
It means Section 179 should definitely be a part of your 2011 strategy. If you need equipment or software and have been putting off buying it due to the economy, NOW is the time to strike. And we'll make it simple for you.
Just contact us here, and we'll answer all of your Equipment Financing and Section 179 questions.
As always, there are limits to Section 179. The underlying limit is the total cost of the equipment you are deducting cannot exceed the total amount of the taxable income you are reporting. This means you cannot have huge equipment deductions while also showing no income. Also, you always need to check your local state tax laws in regards to expensing equipment purchases.
In terms of eligible business equipment, most of the common tangible items that are necessary to run a business and produce goods will qualify for the Section 179 deduction, including:
In looking at the above, you could say almost any "portable" (non-installed/permanent) asset will likely qualify. However, if you have any questions on whether something you wish to finance qualifies, you can always ask us, or reference Publication 946. Also, be sure to check your state's laws regarding equipment purchases and deductions.
Section 179 is better than ever in 2011, and can make THIS YEAR a much better one financially for your company. Save money, and
get new equipment as well – a win/win.
Contact Crest Capital for a free consultation.
US Tax Code Section 179 is the business equipment expense deduction that allows small and medium sized businesses to deduct the cost of needed business equipment and software. It is used by companies who elect to treat the purchase of qualifying property as an expense rather than a capital expenditure, and provides substantial tax relief.
The Section 179 election, which is made on Form 4562, is for the calendar tax year the property was both purchased and placed into service (Jan 01 ?Dec 31). For further details regarding Section 179, contact your local tax advisor, visit www.irs.gov.
Need old Section 179 Calculators? No problem:
For more information about equipment financing programs, business planning tools, and industry resources, Contact Crest Capital.