Highlights of Section 179 in 2019
It’s October, folks – that time of year again when small business-owners should be thinking about Section 179, a `gift’ from the IRS to write off the purchase (or lease) of heavy equipment and software in the same tax year!
The system that was previously in place, when you could only write off a portion of the purchase value of qualified equipment over a period of years, impacted cash flow for small businesses. Section 179 was specifically formulated to remove this friction, so business owners like you would feel encouraged to invest in heavy equipment that will strengthen not only your operations but help the US economy as a whole to thrive and flourish as well.
2019 Deduction Limit: $1,000,000
This deduction applies to both new and used equipment, as well as new software. To take the deduction for tax year 2019, the equipment must be financed or purchased and put into service between January 1, 2019 and the end of the day on December 31, 2019.
2019 Spending Cap on Equipment Purchases: $2,500,000
This is the maximum amount you can spend on equipment before the Section 179 deduction available to your company begins to be reduced, dollar for dollar. The spending cap really makes Section 179 a true “small business tax incentive”, because larger businesses that spend more than $3.5 million on equipment won’t be able to take advantage of the deduction.
Bonus Depreciation: 100% for 2019
Bonus Depreciation, available for both new and used equipment, is generally taken after the Section 179 Spending Cap is reached.
If the acquisition of trucking equipment is important to grow and run your business, then you should be very excited about these Section 179 allowances and take action as soon as possible.
Section 179 expires at midnight, December 31, 2019. To take advantage of this incredible opportunity, you must buy (or lease/finance) your equipment and put it into use by then!
At Custom Truck One Source, we are receiving a lot of queries from potential buyers of specialized trucks – dump trucks, boom trucks, forestry trucks, building supply trucks, diggers, trailers etc. – about how they can take advantage of Section 179 before December 31, 2019.
If you have any questions about purchases or leases, do call us at 844-282-1838 or email us at: [email protected]. We’re standing by to help you get the most value from Section 179 deductions with the largest selection of equipment to suit every budget.
THIS INFORMATION IS PROVIDED FOR GENERAL USE ONLY AND DOES NOT CONSTITUTE SPECIFIC TAX OR LEGAL ADVICE ON ANY PARTICULAR MATTER. ANY LIABILITY RESULTING FROM RELIANCE ON THIS INFORMATION IS EXPRESSLY DISCLAIMED. PLEASE DISCUSS ANY SPECIFIC CIRCUMSTANCES WITH YOUR ACCOUNTING, LEGAL AND TAX ADVISORS.
* Source: Section179.org