Our Loan Officer knew exactly how to meet our needs. We were approved for our loan in 24 hours. This short term loan allowed us to grow and we’re launching new products.
If you own a business one of the most important IRS tax codes you need to be familiar with is Section 179. This tax code over the years has helped business owners throughout the country write off a big portion of their equipment, technology and software purchases, enabling them to save money. IRS Tax Code Section 179 doesn’t increase the total amount small business owners can deduct. It allows them to get their entire depreciation deduction in one year, rather than spreading out the deductions over an asset’s working life.
The old way called the straight-line depreciation method, allows business owners to deduct a portion of the cost each year over its five-year useful life. Now instead of depreciating an asset over a number of years. You have the option to deduct the entire expense in the asset’s first year of use. This is listed has a first-year expense or Section 179 deduction.
For many businesses that can benefit by the revision of Section 179 tax code. There are scenarios where this can back fire for some companies. An example is if a business took the full deduction in one year then sold the equipment the following year. The sale of equipment causes the Section 179 to be recaptured as ordinary income, putting the business owner in a higher tax bracket. Please consult your tax professional about how Section 179 of the IRS tax code may allow you specific tax savings for your business.