Attention business owners: The time to act is now. There are just days left to cut your 2018 tax bill by thousands of dollars. Builder’s Heating & Air Conditioning is talking about the Section 179 tax deduction for small businesses. It was greatly expanded as part of the Tax Cuts and Jobs Act passed by congress in 2017.
Here are some of the key changes as part of the Section 179 tax reform:
- Now includes HVAC equipment—In the past, these purchases had to be depreciated over 39 years. Now the entire cost can be written off in the year of the purchase meaning the tax break is IMMEDIATE.
- Benefit greatly expanded—Congress raised the cap for equipment purchases covered by the Section 179 deduction to $2.5 million.
- Annual deduction doubled—The changes included raise the maximum annual deduction to $1 million, from the previous limit of $500 thousand.
Making HVAC improvements on your business property are now a win-win situation with multiple benefits. Using the Section 179 deduction to write off your purchases will reduce your tax bill and reduce the real cost of the equipment by thousands of dollars. In many cases, you will be getting a much more efficient heating and cooling system resulting in lower monthly bills for your business. The new system will add to the value of the property. Add it all up, and it’s too good of an investment to pass up!
Just remember, time is running out. Equipment purchases must be made between Jan. 1 and Dec. 31 of the tax year the business is claiming. Builder’s certainly is not claiming to be your tax adviser, so to better understand these tax benefits, or to get a better idea of exactly how much of a deduction can be claimed on a specific purchase, check with your accountant. But be sure to call Builder’s Heating & Air Conditioning, because make no mistake, when it’s all said and done the Section 179 benefits can amount to huge savings for you, the business owner.