As we near the end of 2019 (insert *shocked face*), many businesses are reflecting on their year, working to close accounts, hit year-end goals and much more. You, along with many others, are not thinking about taxes. “That’s future Greg’s problem.” This sentiment may work with eating the last cookie during the Christmas potluck, but not in this case. We want you to take full advantage of the tax breaks for small businesses. In that effort, we enlisted the help of our financing partner, QuickSpark Financial. Below we outlined the most common questions they encounter about Section 179.
1. What are the advantages of financing?A business that finances qualifying equipment will still have the opportunity to take full advantage of the Section 179 tax deduction. Doing so is seen as a financial strategy to the bottom-line operations as this allows you to acquire equipment while making smaller payments, preserving much-needed cash flow. While minimizing out-of-pocket expenses, the business can deduct the full amount of the equipment (and/or software) without paying the full cost in the year acquired. Deductions in this manner can actually allow you to save a higher amount in taxes because the total write-off can actually exceed the full year payment amount for the equipment.
2. What is qualifying equipment?
- Equipment & Machines Purchased For Business Use
- Personal Property Used In Business Operation
- Computers & Laptops
- Off-the-Shelf Software
- Office Furniture
- Large Property / Equipment Attached To Building (but not a structural component such as conveyor belts, printing press, large tools)