Are you looking to buy new manufacturing equipment to increase your throughput? Did you know you can buy a MultiCam system and also get HUGE money back from the government on taxes you already paid, while at the same time improving your costs of operation? Well, you’re in luck, thanks to the Section 179 Tax deduction!
The Section 179 is a Tax Code deduction aimed at helping small and large businesses purchase equipment up to a certain limit. If your business has profit and you have not purchased a capital investment this year, you MUST consider purchasing a Capital Asset. Section 179 is applicable for most general business equipment investments such as CNC machinery, computers, software, office equipment, and vehicles (with limitations) to name a few. By this time of the year, most of this tax money is already out of your pocket, and Section 179 gives you the opportunity to get a huge sum back!
In order for the Section 179 Tax Deduction to apply, the equipment must be put to use the same Tax year in which you are filing. Once the clock strikes midnight on the first day of your new tax year, the following year Tax Deduction will only be able to apply moving forward. Since it’s a use-it-or-lose-it type deal, there is no better time than now to invest in this Tax Incentive with a new (or even used) MultiCam CNC Router, Laser, Plasma, Waterjet, or Digital Finishing System.
All MultiCam equipment and software qualifies but before investing, it is highly recommended to verify your potential investment qualifies for the Tax Deduction. For any purchase other than MultiCam, just be sure the equipment, software, or vehicle(s) is used for business purposes more than 50% of the time.
For the 2017 Tax year, the deduction limit for equipment is set at $510,000 while the Spending Cap is set at $2,030,000. Even though these numbers should stay the same for the future, it is quite possible that it can change without notice. All businesses that purchase, finance, and/or lease less than $2,030,000 (2017) for new or used equipment during the Tax year should qualify for the Section 179 Tax Deduction. But once the deduction surpasses $2,030,000, it decreases on a dollar for dollar scale.
In most cases, MultiCam customers can purchase a Router, Plasma, Laser, Waterjet, or Digital Finishing Knife system and write-off the entire equipment purchase price the same day and year they are buying it. In order to show how much you can potentially save, we drew up an example which is displayed below in Table 1 using the Section 179 Calculator.
Example: Say you’re looking to purchase three new MultiCam machines totaling $750,000 dollars. By utilizing the Section 179 Tax Deduction and currently available depreciation schedules, you’ll save approximately $227,500! In turn, all of these savings results in the systems having a realized cost of only $522,500!
With $227,500 cash back in your pocket, that money can effectively be used to benefit your business today rather than losing it to taxes.
The Section 179 Tax Deduction was created to boost the American economy and assist your business towards heading in the right direction. Call MultiCam today to take advantage of these Tax Incentives to reduce the cost of equipment and directly improve your bottom line to help production become more efficient.
CONTACT MULTICAM TODAY: 855.894.3136 or email us at [email protected].
For more information on the Section 179 Tax Deduction go to the official government page at: http://www.section179.org/index.html