This will be my last post for 2017. And besides wishing you all a great Holiday season and New Year, I also want to point out that the time for using Section 179 for 2017 is growing short.

If you want the Section 179 deduction for 2017, you have until midnight, 12/31/2017 to buy and have the equipment in service. Because once the New Year’s ball drops, that’s it – Section 179 for 2017 is over.

Let me reiterate something I’ve been saying all year – the Section 179 tax deduction is so good, that you’d be almost silly not to take advantage of it. It’s a full $500,000, and your total equipment purchases can total $2 million before the tax deduction starts to phase out. This makes it a true small business tax break – most small companies simply aren’t going to exceed that $2 million dollar cap, so it’s very likely that everything you buy equipment-wise you will be able to deduct in full. That’s pretty sweet.

Better still, if you finance the equipment, you’ll take the deduction for 2017, and not make a single payment until 2018 – this can have a profound effect on your year-end financials, and also get you needed equipment right now. For many companies, 2017 was a solid year, and using this tax deduction plus equipment financing can make it even better.

Beyond that, I do hope your December is going great. A lot of companies are really busy now, even if they don’t sell consumer-related products. Plus, a company like mine has a busy December for the exact reason I stated above – companies say “we need to spend $xx on equipment to take a deduction, so let’s get to it”. So I’ll be here until that Midnight bell rings on 12/31.

Have a great holiday, everyone, and I’ll see you in 2018!

I wish I had huge news that Section 179 got a sweet increase, but I don’t. So far, nothing has happened in regards to Section 179. The limits are still $25,000, plus an adjustment for inflation.

Now, let me tell you not to worry about it. My crystal ball says Section 179 will get attention sometime this year. Last year, it got added into the “fiscal cliff” bill in late winter/early spring. Another year, Section 179’s increase came in the fall. But one thing has remained very consistent over the years – businesses love Section 179, and the government has always found a way to increase it. So I’m very confident it’ll get some government love at some point this year.

In case you are new to all of this, Section 179 is the tax code that lets businesses write off business equipment. Almost all capital equipment, many vehicles, computers, office furnishings, and lots of other stuff, can be 100% written off as a tax deduction for the current year. This makes it very attractive to buy equipment in the current year.

Like I said, the $25,000 limit it’s at now will almost certainly get an increase. Last year, it was bumped to $500,000. Assuming you hit that number, and a 36% tax rate, that’s $180,000 right off your tax bill.  Just for buying equipment. Yes, thank you, Uncle Sam.

I have to be clear – I’m not working for the government, so I’m not 100% sure about an increase. Just 99% But, while that 1% says I could be wrong, I still say buy your equipment now. Because if you’re thinking about it, well, that means you need it. No time like now to make profits, right? And if this year is anything like the previous decade, Section 179 will get a nice little boost at some point.