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.
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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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