Understanding the IRS Section 179 Tax DeductionThis IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software leased during the tax year. That means that if you lease a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE (The deduction limit for 2016 is $500,000) from your gross income. It’s an incentive created by the U.S. government to encourage businesses to lease equipment and invest in themselves. An Equipment Lease or Equipment Finance Agreement might be the most profitable decision businesses make this year. Why? Because the amount you deduct will almost always exceed the cash outlay for the year when you combine (i) a properly structured Equipment Lease or Equipment Finance Agreement with (ii) a full Section 179 deduction. It is a tool that can literally add tens of thousands of dollars to your bottom-line!
Learn more about the Section 179 Tax Deduction