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Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases from $500,000 to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased, from $2 million to $2.5 million. In addition, the deduction now includes any of the following improvements to existing nonresidential property (i.e., the improvement must be placed in service after the date the property itself was first placed in service): roofs; heating, air-conditioning, and ventilation systems; fire protection, alarm, and security systems.

Further, the bonus depreciation increases from 50% to 100%. This part is retroactive to 9/27/2017, and is good through 2022. The bonus depreciation also now includes used equipment.


See How Much You Can Save


2018 Section 179 Tax Calculator

Enter Cost of Equipment:



Section 179 Deduction:


Bonus Depreciation Deduction:

(40% CAP in 2018)

Normal 1st Year Depreciation:


Total First Year Deduction:


Cash Savings on your Purchase:

(assuming a 35% tax bracket)


Lowered Cost of Equipment:

(after Tax Savings)

***The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.***


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About

CMS Imaging, Inc. is the premier healthcare solutions provider specializing in the sales and service of diagnostic medical imaging equipment. Founded in 1987 in Charleston, SC as an independent service organization, CMS Imaging has expanded its product line to include MRI, CT, Ultrasound, Digital X-Ray, and Advanced Fluoroscopic systems.

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