Last week we told you about the Section 179 tax deduction and this week we’re give you a cool, new tool for seeing just how much you can save with the Section 179 deduction. Click here to download the Section179 Worksheet, this is a PDF with interactive fields you can use to plug in your own costs and then see just how much you can save and what the after tax cost will be.
The example given is equipment that cost of $20,000. This equipment could be things like computer hardware, a new phones system or even high-end software. With a tax bracket of 35%, the deduction comes to $7,000 meaning the equipment only costs $13,000.
The thing is, you have to hurry. This tax deduction only applies to equipment purchased in this year, so you have to purchase before December 31st. That makes now a great time to make your move and finally get the equipment you need.
This example is for discussion purposes only and does not constitute tax or legal advice. You should consult your accountant or tax advisor regarding the application to you and your business of the tax provisions discussed in the example, which are based on the rules in effect as of January 1, 2016, and which are subject to change (possibly with retroactive effect).