Take Advantage Of Tax Code 179 – Start 2018 Strong!
Listen UP! You may be in a position to have the opportunity to shelter income. How? From taxes by using Section 179 tax code top your advantage, and get new equipment etc… We are leaving the 11th month, “which is the best month to finance equipment,” leaving November moving into December. Yes, it’s a great time to finance equipment. I’ll give you one guess as to why. (it has nothing to do with Christmas or a fat man in red pajamas.)
It is Section 179 of the US Tax Code. It’s a great program no matter what month you finance, but wow, does it take on extra significance now. In fact, it can literally make your year.
Finance equipment (or leasing) here up till the end of December. As a result you can write off the entire purchase price for the year 2017. Depending on the price of the equipment, this can mean a significant dent in your 2017 taxes. Keep more of YOUR money in your bottom line numbers for the year.
But here’s the real beauty in this – as stated, the numbers will make a big difference for THIS YEAR, but you won’t start paying for the equipment until 2018. How’s that? Plus, you get to start next year with new equipment – there are worse ways you can start a year.
There are also plenty of opportunities, as we look to end the current year on a high note, clear inventory. Whatever the reason, BECCA has leasing/financing options.
There is one catch, though – the equipment must be purchased and put into service during 2017. This means by midnight 12/31. “Time is running out!” This year has flown by one minute, you’re planning the company’s spring picnic, then the next, working on closing the year out. Equipment purchases tend to get put off until “profits are better,” the weather clears up, or after we finish Christmas shopping.
If you want to deduct the price of your new equipment on your 2017 taxes? You have only one month left then your chance is over. This is important, because that deduction could mean quite a bit to your bottom line. One more thing: we’re now late in the year, so if you finance this piece of equipment, it is very likely your deduction will actually exceed the net amount of your 2017 payments – that will ADD to your bottom line for 2017. Imagine that – buying equipment can actually turn a profit this year.
Which reminds me of a little known factoid: When the Pilgrims came to the new land and celebrated the first Thanksgiving with the Native Americans, it was actually the first equipment financing deal. See, the Pilgrims needed food and local farming knowledge, and the Native Americans desired the metal tools and weapons the Pilgrims had. So they traded food (i.e. currency) for the hard goods. And I’m sure there were some deferred payments and tax breaks and…