Did you know that you can get a tax deduction on equipment you purchase for your business? It’s a part of the tax code called Section 179. It’s been around for a while, but a $1.8 trillion spending bill passed by Congress at the end of 2015 permanently capped the tax break at $500,000.
Companies that spend $2 million in equipment — anything from machinery, computers, chairs and desks, printers, testing apparatuses, business vehicles and even tractors — can qualify for the Section 179 deduction.
The limit for Section 179 has been incrementally and temporarily raised over the past several years from its initial $25,000-a-year cap to $100,000 in 2003, and then $250,000 in 2008 in an effort to drive spending during the recession. It has been sitting at $500,000 since 2010, but it hadn’t been permanently expanded until recently.
For more on what small-business owners need to know about how the tax break applies to them, check out the infographic compiled by Balboa Capital below.
Do you have the support you need to manage your small business bookkeeping?
Schedule a 30-minute appointment to speak with a local small business adviser.