What You Need to Know About IRS 179 Tax Savings
Here’s a no-brainer: How would you like to save up to $1 million in tax deductions for the work equipment you purchase?
You don’t have to perform a complicated interpretation of the tax code. All is takes is IRS 179, a tax deduction program that allows businesses to deduct the purchasing cost of work equipment from that year’s taxes.
Imagine you’re getting ready to take your business to the next level, but need one (or several) big-ticket pieces of equipment to properly serve your customers. It can be scary to make such a large purchase when you aren’t sure whether you’ll make those costs back up. Well, this deduction is meant for just that scenario — helping small businesses grow without fear.
Let’s dive into this incredibly helpful deduction, and learn how you can use it to help you purchase the equipment you need to launch or expand your business.
The Right Relief — Right Away
In essence, IRS 179 allows you to fully deduct the cost of any work-related equipment or software you purchase the same year you buy it. That means you can knock that full purchase price off your gross income once filing season comes around.
The exemption was designed specifically to help small businesses grow and thrive, encouraging them to make large purchases that would otherwise break the bank — something that Marlin Capital Solutions has always championed.
The program’s original goal of providing tax relief for small companies is still going strong and providing tangible benefits. Here’s how it works:
Before IRS 179, businesses could only write off a portion of their equipment purchases spread out over several years through a process called bonus depreciation. A $100,000 purchase would net just $20,000 in deductions each year for five years. Sure, it’s better than having no tax benefit at all, but it still left companies in a pinch if their budgets couldn’t handle those high prices on top of their tax burdens.
This updated tax incentive allows business owners to claim the full bonus depreciation all at once rather than in smaller amounts over a longer period. If you paid $100,000 this year on equipment, you get the full $100,000 deduction the same year. In 2019, up to $1 million can be claimed using this deduction. That’s a significant amount for any small business owner.
How Marlin Can Help You Grow
Businesses across the country have utilized this deduction to purchase the essential equipment they need right when they need it — no more waiting for your bank account to catch up with your needs.
But here’s the real power of IRS 179: By pairing this tax benefit with Marlin’s financing options, you can earn the full tax deduction without having to pay the full price right away.
Marlin covers the initial cost to win you the deduction while you pay off the necessary equipment in smaller installments, saving you money in the long run. As long as the finance agreement is signed and the equipment enters service before the end of the year, the deduction is yours.
Want to know just how much you could save? Check out Marlin’s IRS savings calculator to see how to pair the IRS 179 deduction with Marlin’s capital solutions. Once you see the savings and are ready to hear more, reach out to a Marlin representative to learn how we can help you take the next step in your business’s growth.
Let Marlin help you invest in your business today.