Most of the time, section 179 equipment purchases take the full deduction for the first $25,000 worth of deductions. The bonus deduction might be applied for new equipment if the deduction\u00a0exceeds\u00a0the Section 179 limits. If a business does not have any income to use the deduction for in the year of purchase, it can carry the deduction over to the next tax year.<\/p>\n
What Type Of Equipment Qualifies?<\/h2>\n
Most print finishing equipment should apply. (Note: you would need to consult your tax consultant for verification). If you have been looking at purchasing a new UV Coater as an example, here it is what the potential cost savings could be if you take advantage of Section 179.<\/p>\n
Tec Lighting 16″ TruCoat Auto Feed UV Coating System:<\/a>![\"Tec](\"https:\/\/2d22dcef2a28e3d8f428.s3.amazonaws.com\/wp-content\/uploads\/trucoatAutofeedx300-300x197.jpg\")
<\/a><\/h3>\nHere is an estimated calculation for a UV coating machine:
\n
\nCost: $23,900<\/strong><\/p>\nBonus Depreciation Deduction: $0
\n(currently not available this tax year)<\/p>\n
Normal 1st Year Depreciation: $0<\/p>\n
Total First-Year Deduction: $23,900<\/p>\n
Cash Savings on Purchase: $8,365.00
\n(Estimated 35% Tax Bracket)<\/p>\n
Lowered Cost of Equipment: *$15,535
\n<\/strong><\/p>\nTriumph 7260 Hydraulic Paper Cutter<\/a>![\"triumph](\"https:\/\/2d22dcef2a28e3d8f428.s3.amazonaws.com\/wp-content\/uploads\/triumph721_06_lg-01.jpg\")
<\/a><\/h3>\nHere is the *estimated calculation for a Triumph Paper Cutter.<\/p>\n
Cost: $23,999<\/strong><\/p>\nBonus Deprication Deduction: $0
\n(currently not available this tax year)<\/p>\n
Normal 1st Year Depreciation: $0<\/p>\n
Total First Year Deduction: $23,900<\/p>\n
Cash Savings on Purchase: $8,399.65
\n(Estimated 35% Tax Bracket)<\/p>\n
Lowered Cost of Equipment: *$15,599.35
\n<\/strong>
\nThinking about upgrading to a Rhin-O-Tuff Binding Machine?<\/p>\nRhin-O-Tuff HD7700H Punch Binding Machine<\/a><\/h3>\nCost: $4,850![\"Rhin-O-Tuff](\"https:\/\/2d22dcef2a28e3d8f428.s3.amazonaws.com\/wp-content\/uploads\/HD7700Ultima-Office_web-300x200.jpg\")
<\/a>
\n<\/strong>
\nBonus Depreciation Deduction: $0
\n(currently not available this tax year)<\/p>\nNormal 1st Year Depreciation: $0<\/p>\n
Total First-Year Deduction: $4,850<\/p>\n
Cash Savings on Purchase: $1,697.50
\n(Estimated 35% Tax Bracket)<\/p>\n
Lowered Cost of Equipment: *$3,152.50
\n<\/strong>
\nOr, maybe you need a wide format laminator?<\/p>\nD&K Expression 62\u201d Commercial Roll Laminator<\/a><\/h3>\nCost: $11,000
\n<\/strong>
\nBonus Depreciation Deduction: $0
\n(currently not available this tax year)![\"D&K](\"https:\/\/customprintproducts.com\/blog\/wp-content\/uploads\/1409072324_featured.jpeg\")
<\/a><\/p>\nNormal 1st Year Depreciation: $0<\/p>\n
Total First-Year Deduction: $11,000<\/p>\n
Cash Savings on Purchase: $3,850.00
\n(Estimated 35% Tax Bracket)<\/p>\n
Lowered Cost of Equipment: *$7,150.00
\n<\/strong><\/p>\n*The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.<\/em><\/p>\nNote that vehicle deductions are limited This is because the first year that the law came out, people started to jokingly refer to it as the “Hummer Law.” Many business owners used this rule to purchase nice cars for their business and personal use. Passenger cars might still qualify, but purchase deductions are limited to $11,060. Vehicles that are more likely to be purchased exclusively for business use can still qualify for the full deduction.<\/p>\n
Otherwise, most types of capital equipment and some software qualifies. This includes tangible equipment,\u00a0print finishing equipment<\/a>, computers, off-the-shelf software, and furniture. For example, a new UV coating machine and Section 179 would be a great fit. You will not have to worry about exceeding the limit if you just plan to use your purchase of a new\u00a0UV\u00a0coating machine and section 179.<\/p>\nRemember To Take Advantage Of Section 179<\/h2>\n
\n
\nCost: $23,900<\/strong><\/p>\n
Bonus Depreciation Deduction: $0
\n(currently not available this tax year)<\/p>\n
Normal 1st Year Depreciation: $0<\/p>\n
Total First-Year Deduction: $23,900<\/p>\n
Cash Savings on Purchase: $8,365.00
\n(Estimated 35% Tax Bracket)<\/p>\n
Lowered Cost of Equipment: *$15,535 Here is the *estimated calculation for a Triumph Paper Cutter.<\/p>\n Cost: $23,999<\/strong><\/p>\n Bonus Deprication Deduction: $0 Normal 1st Year Depreciation: $0<\/p>\n Total First Year Deduction: $23,900<\/p>\n Cash Savings on Purchase: $8,399.65 Lowered Cost of Equipment: *$15,599.35 Cost: $4,850 Normal 1st Year Depreciation: $0<\/p>\n Total First-Year Deduction: $4,850<\/p>\n Cash Savings on Purchase: $1,697.50 Lowered Cost of Equipment: *$3,152.50 Cost: $11,000 Normal 1st Year Depreciation: $0<\/p>\n Total First-Year Deduction: $11,000<\/p>\n Cash Savings on Purchase: $3,850.00 Lowered Cost of Equipment: *$7,150.00 *The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.<\/em><\/p>\n Note that vehicle deductions are limited This is because the first year that the law came out, people started to jokingly refer to it as the “Hummer Law.” Many business owners used this rule to purchase nice cars for their business and personal use. Passenger cars might still qualify, but purchase deductions are limited to $11,060. Vehicles that are more likely to be purchased exclusively for business use can still qualify for the full deduction.<\/p>\n Otherwise, most types of capital equipment and some software qualifies. This includes tangible equipment,\u00a0print finishing equipment<\/a>, computers, off-the-shelf software, and furniture. For example, a new UV coating machine and Section 179 would be a great fit. You will not have to worry about exceeding the limit if you just plan to use your purchase of a new\u00a0UV\u00a0coating machine and section 179.<\/p>\n
\n<\/strong><\/p>\nTriumph 7260 Hydraulic Paper Cutter<\/a>
<\/a><\/h3>\n
\n(currently not available this tax year)<\/p>\n
\n(Estimated 35% Tax Bracket)<\/p>\n
\n<\/strong>
\nThinking about upgrading to a Rhin-O-Tuff Binding Machine?<\/p>\nRhin-O-Tuff HD7700H Punch Binding Machine<\/a><\/h3>\n
<\/a>
\n<\/strong>
\nBonus Depreciation Deduction: $0
\n(currently not available this tax year)<\/p>\n
\n(Estimated 35% Tax Bracket)<\/p>\n
\n<\/strong>
\nOr, maybe you need a wide format laminator?<\/p>\nD&K Expression 62\u201d Commercial Roll Laminator<\/a><\/h3>\n
\n<\/strong>
\nBonus Depreciation Deduction: $0
\n(currently not available this tax year)<\/a><\/p>\n
\n(Estimated 35% Tax Bracket)<\/p>\n
\n<\/strong><\/p>\nRemember To Take Advantage Of Section 179<\/h2>\n