The Section 179 Deduction to Help Your Bottom Line
We blog regularly on how yard ramps can streamline your workflow. And now, with the end of 2015 in sight, we want to bring the possibility of a specific tax deduction to your attention, and it might help brighten your tax scenario.
There are some 74,000 pages in the complete US federal tax code. That’s good if you’re an accountant and like—or need—to maintain expertise in tax law, and that’s not so good if you’re a tree.
Read the whole thing if you want, though today we’re highlighting the Section 179 Tax Deductions for small business.
Please note that we are definitely not tax experts or advisers and strongly recommend you share this information with your CFO and/or accountant.
The website, www.section179.org, states that the Section 179 deduction “allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.”
That’s potentially good news for your company’s equipment additions during the year. The way we’re reading this information: you must obtain the equipment and put it into service by the last day of the calendar year for the deduction to qualify.
This would apply to yard ramps as “property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment).”
It looks like the IRS has put a cap on the 2015 deduction at $25,000. Also, you must use the equipment for business purposes more than 50% of the time. (So, bring the time using your yard ramp as a buffet table down to 49%, and you should be in pretty good shape.)
Again, we’re quality yard ramp experts and not tax experts. That said, we are keenly interested in helping you optimize both your business operations and your financial operations. And the Section 179 Deduction looks like an excellent tax incentive.
