In years past, when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).
Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
And that’s exactly what Section 179 does – it allows your business 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).
Limits of Section 179
Section 179 does come with limits – there are caps to the total amount written off ($1,000,000 for 2018), and limits to the total amount of the equipment purchased ($2,500,000 in 2018). The deduction begins to phase out on a dollar-for-dollar basis after $2,500,000 is spent by a given business (thus, the entire deduction goes away once $3,500,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.
Who Qualifies for Section 179?
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2018 should qualify for the Section 179 Deduction (assuming they spend less than $3,500,000).
For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2018 and December 31, 2018.
Here is a list of machines that Scarlett Inc. has in stock that can be sold and put on your floor before the end of the year to qualify for Section 179.
Holzher Evolution 7405 – Vertical CNC Machine
Holzher Sprint 1329 Premium
Holzher Streamer 1052 – Edgebander
Holzher Sector 1255 Pro – Vertical Panel Saw
Weinig Dimter Opticut S50 – Optimizing chop saw
Weinig Rondamat 960 – Profile Grinder
Weinig Powermat 700 – Moulder
Weinig Servo Lock
Weinig Variorip 310 – Optimizing Rip Saw
Cresswood Grinder – EF-24-40A-ST
C.R Onsrud 122C18
C.R Onsrud 98RH18DA Roller Hold Down Machine
C.R Onsrud 145G18
SNX Countour Edgebander
Fanuc Robot R-2000iA
Doucet BT3-36 Return Conveyor
Doucet DWM-42 Drawer Clamp
Doucet NWR-8 Clamp Rack
Doucet MFE-150 Moulder Feeder
Call or E-mail to discuss a quote.