What is Section 179 and how will it save me $$ on my BBQ Equipment.
What is the Section 179 deduction
Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t, as you will see below.
Essentially, 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.
Summary of Guidelines
- Available deduction for 2018 is now up to $1,000,000.00
- Deduction phases out dollar for dollar at $2,500,000 and is eliminated at $3,500,000
- Available for tangible New or Used Equipment that is actively used by the business (must be new to you)
- Asset(s) must have a normal depreciation deduction
- Equipment must be purchased and installed to qualify for deduction in given tax year
What Does This Mean To Me?
If you are buying bbq equipment you will want to know how much money you can save on your purchases. That's why we have partnered with our financing company to create a calculator that will not only provide you with a payment break down, but also provide the Section 179 tax savings. Try it here: Section 179 Tax Savings Calculator
Using The Calculator
All one has to do to see how much one can potentially save is enter the cost of the equipment you want to purchase, select which program you are in (start up business or existing business) and hit the “Calculate” button. No other information is required to use the Section 179 Tax Savings Calculator. You can even print out this summary with any quote. We suggest that you do print out the summary and provide it to your tax adviser, who can confirm whether or not this type of tax application is best for your specific situation.
Below you will find an actual example based on a smoker or bbq equipment priced at $4000.00. As you will see you will save $800.00 in tax deductions with this program. Place your orders before 10/31/18 to receive your smoker before 12/31/18 when the program end. Your payments can also be as low as $81.83 month depending on established business and personal credit history.