Can I Finance or Lease and Still Qualify for Section 179?
Business equipment financed or leased still qualifies for Section 179. The tax law is still the same, even if you’re making payments on equipment for several years. The equipment needs to be in service and must be for business purposes to qualify for Section 179. COMEQ advises customers and business partners to check with their accounting team, controller or tax resource about any specifics related to their business or industry. Contact us if you wish to have more information.
2018 Spending Cap on equipment purchases = $2,500,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3.5 million on equipment won’t get the deduction.)
Bonus Depreciation: 100% for 2018
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached.
Bonus Depreciation is available for new and used equipment.