The 2018 tax law provides for significant increases in the ability to generate a tax break on equipment purchases. The maximum amount a business can use for Sec. 179 expensing has been increased from $500,000 to $1,000,000 for purchases of both new and used equipment.

In addition, immediate expensing has been expanded to include additions to commercial buildings for enhancements such as HVAC equipment, fire protection and alarms, and security systems.

Historically, bonus depreciation could only be used on new equipment and was capped at 50% of the cost. With this cap removed, bonus depreciation is now 100% of the cost remaining after the Sec. 179 write-off has been taken – even on the acquisition of used equipment. In effect, this makes the equipment acquisition fully deductible without limitation.

Follow this link for helpful Section 179 information for 2018

Time is running out for this 2018 tax break… Contact CTS for help in mapping out your path to new technology: 800.787.4848 or jnolte@ctsmd.us.