Small businesses around the country are taking advantage of the Section 179 program this year. The deduction is good on new and used equipment, for the 2016 year. The equipment must be bought and put into service by the end of the day 12/31/2016. The deduction limit has increased to $500,000 with a spending cap of $2,000,000 on equipment purchases.
Here is an example of the 2016 Section 179 Calculation
Now most people thing that this is a complicated tax code, but it really isn’t. The deduction allows businesses to deduct the full purchase price of qualifying equipment during the tax year. That means if you buy or lease a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from you net income.
Overall this is an incentive created by the government to encourage businesses to buy equipment and invest in themselves.
All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during tax year 2016 should qualify for the Section 179 Deduction.
For a complete explanation check out this link: http://www.section179.org/section_179_deduction.html