Everyone wants to take advantage of the most deductions that they possibly can when tax season rolls around. While some deductions might be obvious or apply to your return automatically, doing a little bit of digging into the tax code can reveal some additional deductions that you might not otherwise have known about. One such deduction is the Section 179 deduction, which applies to small to medium-sized business owners and can offer significant savings.
Understanding the Section 179 deduction
Like much of the current tax code, Section 179 can be a little bit hard to understand for some people. It can be confusing to try to understand exactly what the deduction is, how to qualify for it and how to actually claim it. Thankfully, by doing a little bit of research (or by talking to your tax professional or accountant), you can find out how to capitalize on this deduction and get the most tax savings possible.
The essence of the Section 179 deduction is this: If you are a small or medium-sized business owner and you have purchased, financed or leased equipment that you used for your business, then you qualify for the Section 179 deduction. The limit for the deduction in 2017 is $500,000, and there is a spending cap on qualifying equipment purchases of $2,000,000, at which point the Section 179 deduction available to your business begins to reduce. Because of this cap, the deduction is most beneficial to small or medium-sized businesses, rather than large ones. Even though there are many business owners who qualify for this deduction, many don’t end up receiving it; that’s because this deduction is not automatic and you must elect to take it.
In order to elect to take the Section 179 deduction, you will need to fill out Part 1 of IRS form 4562 when you file your tax return for the year. You can download the form from the IRS website, fill it out and then attach it to your tax return for that year in order to get your deduction. The deduction is done on an item-to-item basis, which means that you can elect to take the deduction for some items and you can choose to pass up the deduction on other eligible items as you see fit. Because this deduction applies to your purchases over the course of the calendar year, it is wise to make any major equipment purchases before the end of December so that you can elect to take the deduction on the tax return that you will file in 2018.
Purchase from a new forklift dealer in Abilene, TX
If you are in need of some new equipment for your business, don’t wait to make a purchase. Get your equipment from V-Bar Equipment Company so that you qualify for the Section 179 deduction on next year’s tax return. We are a new forklift dealer in Abilene, TX that sells and services forklifts, forklift telehandlers, boon lifts and scissor lifts that can increase productivity and maximize time-efficiency in your business. Contact us today for more information about purchasing an exceptional piece of equipment.
Categorised in: Forklift Dealer
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