SECTION 179 ELECTION
RCMH NEWS ALERT: SECTION 179 REMAINS $500,000 FOR 2017
January 1, 2017 – Section 179 is still affected by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act), signed into law on 12/18/2015. This bill expanded the deduction limit to $500,000, which will remain for all of 2017. For those interested, you may read the summary from the Ways and Means committee here.
Deduction: Until further notice, 179 will be permanent at the $500,000 level. Businesses exceeding $2 million of purchases in qualifying equipment have the 179 deduction phase-out dollar-for-dollar and eliminated above $2.5 million. The Section 179 cap will also be indexed to inflation in $10,000 increments in future years.
50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016, and 2017. Then bonus depreciation will decrease to 40 percent in 2018 and 30 percent in 2019.
IMPORTANT THIS YEAR: Section 179 for the Current 2017 Tax Year
Section 179 can provide significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight on December 31, 2017. Use this 2017 Section 179 Calculator to see how much the tax deduction can save your company.