Another year is almost in the books, and if you're considering adding to your studio at the end of 2019, Vintage King Audio can help save you money. Thanks to a helpful piece of IRS tax code, studio owners making large purchases before the end of December can deduct the price of their new gear from their 2019 gross income.
This tax code is known as Section 179. Many assume that it's a complicated piece of literature, but it's actually really simple. Let's break it down.
What is Section 179?
Section 179 "allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year." This means that if you purchase a piece of equipment or large package from Vintage King Audio before December 31st, 2019, you can deduct the full purchase price (up to $1,000,000) from your gross income of this year.
What If I'm Leasing Or Financing My Purchase?
No worries, you can still take advantage of Section 179. In many cases if you are leasing or financing a purchase from Vintage King Audio, you can still claim some or all of the deduction upfront. By doing so, you could end up with $0 or less out of pocket in your first year of owning your new equipment and have it up and running in your studio before any net payments are due.
Are There Limits To Section 179?
Yes, Section 179 has its limits. As mentioned previously the cap to the total amount written off is $1,000,000 for 2019. The limit to the total amount of the equipment that can be purchased for 2019 is $2,500,000. After $2,500,000, the deduction "begins to phase out on a dollar-for-dollar basis. Once $3,500,000 is reached the deduction goes away all together, as this is meant for businesses that are small to medium in size.
How Can Vintage King Audio Help?
For over 25 years, Vintage King Audio has specialized in helping build, design and outfit recording, mixing, and mastering studios. If you're ready to add to your studio before the end of 2019, our team of Audio Consultants are here to help and advise on gear purchases.