Combine Section 179 and Bonus Depreciation to maximize tax savings on new equipment acquired in 2019.
Section 179 Allowance:
The Tax Cuts and Jobs Act (H.R.1) makes the Section 179 expensing allowance permanent and is now set at the $1,020,000 level in 2019 for qualifying new and used equipment. Businesses with over $2,550,000 of purchases in 2019 will have the expense deduction phase out dollar for dollar up to $3,500,000. In addition, the Section 179 amounts are indexed to inflation in $10,000 increments for future years.
The Tax Cuts and Jobs Act (H.R.1) extends and modifies the rules pertaining to bonus depreciation. The applicable bonus depreciation percentage will now be 100% for property placed in service during 2019.
Contact Shawmut’s Sales Department for information on qualifying equipment.
Please contact your Tax Advisor with any tax related questions.