Section 179 is an IRS tax code that allows small businesses to deduct the full purchase price of qualifying items from their gross income that have been purchased or leased. The incentive was created so small businesses could invest in themselves by obtaining the tools needed.
Initially, small businesses could claim tax exemption up to $25,000 of new and used equipment and off-the-shelf software used in office. In December 2015, the House and the Senate signed the â€˜Protecting Americans from Tax Hikes Act' (PATH Act) into law. Since the act passed, the deduction limit has been raised to $500,000 and must be used by the last day of each year.
- Any equipment (machines) purchased for your business
- Vehicles used for business purposes (that do not exceed 6,000 lbs)
If your office purchases MacPractice software before December 31 of 2017, the software will qualify for a tax exemption.
Section179.org uses an example that has an initial amount of $650,000 to show the break down in numbers. Several sites also offer calculators specifically geared toward Section 179 savings.
If your office is considering purchasing MacPractice, or if your office already has it, consider using Section 179 to help save your office money in 2018. For more information about how use and apply for Section 179, visit section179.org.