Get up to $500,000 in Section 179 Deductions for 2016 Equipment Purchases!

What if you could buy equipment to maximize business AND also increase your bottom line? The Section 179 deduction can help you achieve just that! The Section 179 deduction for 2016 permits businesses to deduct the FULL amount of your equipment purchase price up to $500,000. To qualify for this deduction, the equipment must be purchased no later than December 31, 2016.

Quick Facts:

  • If you plan to use the equipment you are leasing, financing, or buying for business purposes in 2017, then it most likely qualifies for a Section 179 deduction.
  • The applicable bonus depreciation percentage is 50% for equipment placed in service during 2016 and 2017. The applicable bonus depreciation percentage will be 40% for property placed in service in 2018, and 30% for property placed in service in 2019.
  • Section 179 deductions are easy to handle. Simply buy, lease, or finance your equipment and then fill out IRS form 4562.
  • Taking advantage of the Section 179 deduction is a direct way to invest in the future of your business while reducing costs. Benefit by seizing the opportunity to expand your business with Morbark grinding, chipping, shredding or screening equipment.

Example of an Equipment Purchase

Purchase Price $500,000
Section 179 Allowance $500,000
Deduction $500,000
Potential Tax Savings (35% tax bracket) $175,000
Cost of Equipment (after tax savings) $325,000

Example of an Equipment Purchase

Purchase Price $1,000,000
Section 179 Allowance $500,000
50% Bonus Depreciation ($500,000 x 50%) $250,000
MACRS Depreciation ($250,000 x 20%) $50,000
Total First Year Deductions $800,000
Potential Tax Savings (35% tax bracket) $280,000
Cost of Equipment (after tax savings) $720,000

Want more information? Complete the form below!