IRS 179

Save 100% On Your Equipment

If you’ve been waiting to purchase new or used equipment for your company now is the time you can possibly get it for FREE. All you need to do is purchase your equipment and put it into use by December 31, 2019 – and we can help you with that.

How does that work?

The Senate voted to extend IRS Section 179 which allows businesses to write off up to 100% of the purchase price of new and used equipment. This Tax Break expires on January 1st, 2020 – so it will cost a whole lot more than free after that date.

At KMH we can help you decide what is the best fit for your purchase. Our Team will walk you through your options and you short and long term goals to make sure you purchase what will serve you best now and in the long run.

We can help you compare the needs of your business and which options will benefit you the most. With the Tax Break you won’t need to worry about scrimping on your most important items – you can invest in your future and get your money back at Tax Time.

Section 179 Deduction

IRS 179 Overview:

2019 Deduction Limit = $500,000

This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2019, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2019.

2019 Spending Cap on equipment purchases = $2,000,000

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”.

Bonus Depreciation: 50% for 2019

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.