Section 179 & Savings Calculator
Please consult your tax professional about specific tax savings for your business.
2017 Deduction Limit = $500,000This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2017, the equipment must be purchased and put into service between January 1, 2017 and the end of the day on December 31, 2017.
2017 Spending Cap on Equipment Purchases = $2,000,000The maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis is $2 million. This spending cap makes Section 179 a true "small business" tax incentive because larger businesses that typically spend more than $2.5 million on equipment will not be eligble for the deduction.
Bonus Depreciation: 50% for 2017Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Please Note: Bonus Depreciation is only available for new equipment; used equipment qualifies for Section 179 Deduction, but does not qualify for Bonus Depreciation
Section 179 Deduction:
Bonus Depreciation Deduction:
Normal First Year Depreciation
(Assuming a 5 Year Depreciation Schedule):
Total First Year Deduction:
Cash Savings (Assuming a 35% Tax Bracket):
Lowered Cost of Equipment (After Tax Savings):
Take Advantage of the IRS Section 179 Today!
Under Section 179 of the Internal Revenue Code, businesses can write off the full cost of equipment in the year you purchase it, rather than deducting a portion of the cost annually over the life of the equipment.
To take advantage of these high Section 179 limits for 2017, the equipment must be purchased and put into service by midnight on December 31, 2017. Contact Hartwig to discuss your machine tool and financing needs today!