Section 179 Depreciation

For your 2016 tax return the Section 179 Depreciation expensing limits are $500,000. Once your purchases exceed $2,010,000, this limit is reduced dollar-for-dollar.

These limits have increased in 2017. Businesses can expense up to $510,000 of qualified new or used business equipment purchases, with a $2,030,000 annual purchase limit. In addition, new equipment purchased in 2017 may qualify for 50% bonus depreciation. This rate drops to 40% in 2018, so plan your purchasing accordingly. Permanent deductions included in the definition of “section 179 property” are:

* Computer software

* Real property. (For example; qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property).

* Heating and air conditioning units.

For assistance maximizing section 179 depreciation deductions on your business asset purchases, contact our office at (260) 497-9761 to schedule an appointment with our Virtual CFO.