I know a sizable portion of readers here rely on Fletch to bring them the latest Section 179 news. After all, I’m sometimes called the “Section 179 Geek” by friends and colleagues, and yes, I’m guilty of that. I simply think it’s an awesome business tax deduction that should be utilized each and every year by each and every business in existence. Is that too much to ask?
Anyway, as I’ve mentioned a few times here, Section 179 got a nice boost with the Tax Cut and Jobs Act signed on December 22, 2017. It raised the Section 179 limit to $1,000,000 (which is double the previous limit), and also raised the “total equipment purchased” limit to $2.5 million.
Those were the changes that got the most press. But there were other changes too. For example, the bonus depreciation (which is typically taken after the Section 179 deduction) got boosted to 100%. And it includes used equipment for the first time.
In addition, some improvements to non-residential property can now be deducted (thinking of a new roof or an alarm system? Great – you can now deduct them, amongst other improvements.) Plus, some vehicle expense limits rose, as well as other small changes.
The point of this post wasn’t to outline the changes here, but to direct you to an official IRS Fact Sheet that highlights the recent changes to Section 179. You can simply click the below link, or copy and paste it into your browser:
Besides letting you know these changes myself several times, I feel it’s handy to hear them straight from the horse’s mouth. Because while the phrase “Fletch said” carries a lot of weight in my own professional and personal life (ok, it doesn’t, but I can dream), some companies want to see the changes in an official IRS sponsored capacity.
So definitely check out the official Section 179 changes fact sheet, and make sure you use the tax deduction to the fullest this year. Because Fletch said.