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News & Press: MPMA News

Section 179 - Deadline is December 31

Wednesday, December 6, 2017  
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What is Section 179?

Section 179 allows companies to deduct the full purchase price of qualifying equipment or software that was financed or purchased during the tax year. This means that if you bought or leased qualifying equipment in 2017, you are able to deduct the full purchase price from your gross income. In addition, you may also qualify for bonus depreciation. Section 179 was created to provide tax relief for small businesses, although larger businesses can also benefit from this tax code.

Section 179 Deduction for 2017

  • For both new and used equipment.
  • Up to $500,000 if equipment is installed and put into service by midnight December 31, 2017.
  • After $2MM in qualified purchases, phase-out dollar-for-dollar until completely eliminated above $2.5MM. A true “small business tax incentive."

Bonus Depreciation

  • Can be used in conjunction with Section 179 once $500,000 deduction cap is met.
  • New equipment only.
  • 50 percent cap in 2017, 40 percent in 2018, 30 percent in 2019.

For more information, click here to contact MPMA member and sponsor, KLC Financial.