Important Update - Section 179
"Protecting Americans from Tax Hikes Act of 2015" has been passed by Congress - expanding the Section 179 deduction limit to $500,000.
- The total amount of equipment a business can write off this year has increased from $25,000 to $500,000.
- This is retroactive to January 1, 2015.
- To count the write off for this year, physicians need to act by Thursday 12/31/15!
- These tax savings apply whether financing, credit, cash or check.
How It Works: Example - $100,000 Purchase
Cost of equipment
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$100,000.00
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1st year write-offs
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• Section 179
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$100,000.00
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• 50% Bonus depreciation
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$0.00
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• Normal 1st year depreciation*
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$0.00
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Total 1st year deduction
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$100,000.00
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Potential tax savings in 2015**
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$35,000.00
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Equipment cost after tax savings year one
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$65,000.00
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*Based on an expected 5 year asset life
**Tax savings assume a 35% tax rate
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