If your business purchased or leased qualifying equipment and/or software and started using it during 2017, you can deduct the full price from your gross income to save money on your 2017 tax return.

Section 179 of the IRS Code was enacted to help small businesses by allowing them take the full deduction on an asset in the year that you purchased it, rather than spreading out the deduction over the item’s useful life. For example, if you bought or leased a multifunction printer or other device for your office, under Section 179 you can deduct the full cost of that device in one year.

For the 2017 tax year, the amount of the deduction is the total cost of all of the property, up to $500,000 for each individual item of property. In addition, a bonus depreciation of 50% / 100% can be claimed on equipment purchases that exceed $500,000, depending on whether the item was purchased before or after September 27th 2017. The total Section 179 deductions for all property can’t exceed the $2 million maximum.

Always consult your Tax Professional to learn more about taking a Section 179 deduction on office technology & equipment acquired in 2017.

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