Section 179 of the IRS Tax Code allows a business to deduct the full purchase price of qualifying equipment purchased during the tax year. A business may deduct up to $1,000,000 in 2019 with purchase prices amounting to no more than $2,500,000. Bonus depreciation can be used after the $1 million cap.
The new law increases the bonus depreciation percentage from 50 percent to 100 percent for qualified property acquired and placed in service before 1/1/2020
The definition of property eligible for 100 percent bonus depreciation was expanded to include used qualified property acquired and placed in service before 1/1/2020
For example, if you purchase a machine at a discounted show special price at Fabtech for $200,000, the effective cost of the machine for 2019 could be $158,000 (42,000 cash savings at 21% tax rate).
Universal Tool & Engineering is an industry leader in CNC tube benders, CNC tube lasers, and automated workcells. UTE will be in booth #D46568 providing demonstrations of our automated workcells. A UTE representative will be present with more information on our full line of tube fabrication equipment and solutions to your problems.
*The material contained herein is for informational purposes only and does not constitute tax advice. Please consult your tax advisor regarding the impact of this information on your specific tax situation.