Everybody Wants a (Tax) Break—But Hurry!
Companies considering investing in new machinery or equipment may want to do so before the end of the year to take advantage of deductions on their 2016 taxes.
For shops investing in new machines and equipment, Section 179 of the IRS tax code provides a deduction for “qualifying purchases.” This provision of the code enables a business to write off a purchase in the same tax year rather than over several years in increments based on depreciation. The result is a substantial savings in federal income taxes. However, the deduction can only be claimed for the year in which the purchase was made. This means, companies now considering an investment may want to do so before the end of the year. Many machine tool suppliers and dealers are ready to help make this happen on time, and a site they frequently link to as a reliable backgrounder on Section 179 is here. Check it out and give your machine tool supplier a call.