Section 179 Deduction is $500,000 for 2016
It’s hard to believe that the 4th quarter is already upon us.
2016 has been a good year for the majority of business owners across the country and many will be searching for ways to reduce their tax burden between now and the end of the year.
If you aren’t already familiar with the updated IRS Section 179 tax rules, don’t worry, you still have time to benefit from them.
Section 179 at a Glance for 2016
To take advantage of this Great Tax Savings for your business, you must purchase your Dental Equipment before the cutoff time of midnight 12/31/2016.
2016 Deduction Limit = $500,000 - This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2016, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2016.
2016 Spending Cap on equipment purchases = $2,000,000 - This is the 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. This spending cap makes Section 179 a true "small business tax incentive".
Bonus Depreciation: 50% for 2016 - Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.
The above is an overall, "simplified" view of the Section 179 Deduction for 2016. For more details on limits and qualifying equipment, please visit www.Section179.Org.
Now Here’s The Important Part:
Making your equipment purchase’s before year end and partnering with Dental Equipment Liquidators is your best choice. Providing dental professionals with affordable alternatives to high priced equipment is our specialty. Saving customers 50-70% off retail prices, our knowledgeable staff and great customer service has put us in the forefront for over 18 years now.
And just as a reminder - Dental Equipment Liquidators Inc. and UsedDentalEquipment.com are not tax advisors. So be sure to consult your tax consultant for your specific deduction details.
Example of Potential Savings:
|$35,000||Section 179 tax savings (assuming a 35% corporate tax bracket)|
|$65,000||Net effective Cost After Tax Savings|