The Section 179 Tax Deduction
Tax Breaks for Gear!
No doubt about it, the US Tax Code is not a thrilling read. However, there is one provision that can truly benefit your business. Did you know that you can get tax breaks for the new and used gear you buy this year? Section 179 helps makes it all possible!
By giving business owners the chance to deduct up to $500,000 total this year on equipment purchased, Section 179 of US Tax Code makes it easier to buy the gear you need. In order for the rule to apply, you have to make your purchases and put the equipment to use before December 31, 2016 to save on your taxes this year.
Read on to learn more or start shopping before this amazing tax option expires! Be sure to consult your tax professional.
Does the tax break apply to me?
If you need music gear as a part of your business, then yes, Section 179 applies to you!
How does Section 179 work?
We'll do our best to translate the math-speak. At its core, Section 179 was added as a part of recent Stimulus Bills that were passed into law. Before Section 179, you could only write off the amount your gear depreciated every year, which can still be done. This new provision helps business owners get the equipment they need today by accelerating that depreciation through Section 179.
Thanks to Section 179, you get to write off the full purchase price in the very same year you buy the gear. By doing this, you don't have to postpone the purchases you want to make. If you know certain equipment will help grow your business in the coming year, then Section 179 can help you throughout the process.
Click the following link to use a tax calculator to see just how much you could save: www.crestcapital.com/tax_deduction_calculator
How much can I deduct?
In late 2015, Section 179 was increased to a permanent level of $500,000. Businesses exceeding a total of $2 million of purchases in qualifying equipment will have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million.
What gear does Section 179 work for?
Whether it's new or used, if the gear is for your business, you can make the purchase! This includes pro audio hardware and even equipment like new studio furniture, computers, and cabling. Even some software qualifies for Section 179. For purchases up to $500,000, the deduction works exactly the same way for new and used gear. Have you been eyeing a vintage microphone or compressor all year? Utilize Section 179 to make your audio dreams come true!
We should also mention that if a piece of gear will be helpful for business and personal use (i.e., headphones), it can still apply to Section 179. Whether you use the equipment at the office, studio or on business trips, the gear still qualifies for an income-tax deduction, determined at the percentage you'd be using the product at work.
Does leased or financed gear qualify?
Yes! You can take advantage of perks with our Vintage King Audio credit card, while qualifying for the deduction. We can also help you secure a lease. Give us a call at 888.653.1184 or click here for more information on payment and financing options.
For full details visit www.section179.org