Did you know that you can now deduct up to $1,000,000 on your capital expenses for 2018 and beyond? This new increase falls under Section 179, which allows you to make deductions on your capital expenses based on the current year instead of a depreciation schedule. But you’re going to have to hurry, as the deadline for both purchases and installations must be made before December 31, 2018.
Changes were also made to bonus appreciation, with increases from 50% to 100%. You can now use it for both old and new equipment with no spending cap, retroactive to September 27, 2018 and extending through 2022.
Another increase was made to the spending cap for 2018 purchases, now set at $2,500,000. This also includes new and used equipment, as well as off-the-shelf software. After you reach this limit, the deduction will phase out on a dollar-for-dollar basis.
Refer to the chart on the right for an example calculation, using $1,150,000 for equipment purchases and resulting with a $402,500 cost savings. If you want to see what your tax deduction will look like, use the 2018 Section 179 Tax Deduction Calculator.
For additional details on Section 179 and how it works, visit section179.org.
Now, take a moment to browse through the AXYZ line of CNC routers here. If you have any questions, complete our online contact form or call 1-800-361-3408 to talk to a member of your local Customer Care Team. We’ll help you find the best CNC machine for your business so you can start your tax deduction strategy today.