Section 179 at a Glance for 2018
2018 Deduction Limit = $1,000,000 (one million dollars) This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2018, the equipment must be financed/purchased and put into service between January 1, 2018 and the end of the day on December 31, 2018.
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.
The above is an overall, “simplified” view of the Section 179 Deduction for 2018. For more details on limits and qualifying equipment, as well as Section 179 financing please contact Lease Tech Capital at 949-361-0041. We will also make sure to update this page if the limits change.