What is the Section 179 Deduction?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Section 179 at a Glance for 2018
- 2018 Deduction Limit = $1,000,000 (one million dollars)
- 2018 Spending Cap on Equipment Purchases = $2,500,000
- Bonus Depreciation is 100%
Here’s How Section 179 works:
In the past, when businesses bought qualifying equipment, it was usually written off a little at a time through the depreciation process. Simply put, if your business spends $50,000 on a machine, it gets to write off about $10,000 a year for five years (these are only numbers used as an example).
Most business owners would rather write off the entire equipment purchase in the year they bought it. Now that’s precisely what Section 179 allows – it gives your business the ability to write off the entire purchase price of qualifying equipment for the current tax year.
This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2018 tax return (up to $1,000,000).
Guess what this means for WorkSafe clientele? All money spent on ISO-Base™ and other non-structural earthquake mitigation products is 100% deductible. It should qualify under the "equipment" or "property attached to your building that is not a structural component of the building" clauses.
Section 179 offers your business a tremendous opportunity. Take advantage of this opportunity today by contacting your local WorkSafe Technologies reseller. If you'd like to download our guide to section 179, click here.