Section 179 Equipment Lease Example Video

Section 179 Example Video

Here is an example of a business owner using tax code section 179.

Steve is the owner of small business. Based on this years performance he is going to fall into the 35% tax bracket. If he finances or leases qualifying equipment he can deduct the whole purchase price from his gross income. Steve finances $100,000 in equipment, reducing his taxable income by $100,000 and giving him a tax savings of $35,000. Now steves after tax savings cost of equipment is $65,000. If Steve waited until next year to purchase it could have cost him $35,000 more for the same equipment.

Calculating Section 179

$100,000.00 Cost of Equipment

-35,000.00 Tax savings from depreciation (assuming 35% federal and state tax bracket)

$65,000.00 Net cost of equipment after first year

NEED EQUIPMENT NOW? DON’T WAIT UNTIL NEXT YEAR!   TAKE ADVANTAGE OF YOUR SECTION 179 TAX CREDIT

what is tax code 179
What is Tax Code Section 179

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