Qualifying companies have the potential to deduct $500,000.00. Section 179 tax deduction is meant for small businesses purchasing new or used manufacturing equipment and software.
How does this tax deduction relate to you and CNC Parts Dept. Inc.?
Equipment such as CNC routers and CNC router components used for business are qualifying items. Some software also qualifies.
What are the limits?
The deduction limit for 2017 is $500,000.00. Section 179 is applicable if less than $2 million a year is spent on qualifying equipment.
What happens if you go over the $2 million dollar limit?
Because this deduction is meant to be specifically for small businesses, every dollar spent over $2 million is removed from the $500,000.00 deduction.
Beneficial information as well as tools in regard to this deduction can be found at: http://www.section179.org/
If you are a small business owner and are thinking about investing in equipment for your company, call your tax preparer to see how much you can save.