Section 179 Expensing

Take Advantage of Section 179 Expensing in 2018

If you’re in the market for automated welding equipment of any kind, there has never been a better time to invest in innovation from Bancroft Engineering. There is still time to order and have your machine delivered by the end of the year. Our schedule is filling up quickly, so act now!

 

We would like to remind our customers that Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179) has been restored to a write-off of up to $1,000,000 for 2018.  To qualify, the equipment must be:

  • Installed and placed in service during the same tax year
  • More than 50% of the use of the equipment must be used for the business

 

In addition, a bonus depreciation is extended through 2018 for all businesses who have purchased over $2.5 million in equipment. This bonus depreciation is 100% in 2018!

 

How does all this work? Our accountants have provided us with the following examples to help explain it:

Section 179 deduction is not a complicated tax code, it is one of the few government incentives available to small business. When a company buys equipment, whether by a cash purchase or by financing it, the company typically spreads the expense over several years through depreciation.  For example, if a company buys a machine for $100,000, the company can expense about $20,000 per year through depreciation for 5 years. Section 179 allows that company to expense the entire $100,000 during the current tax year if there is sufficient income to offset the expense, thereby accelerating the tax savings.

 

Section 179 Expensing Example:

  • Cost of Equipment After All Bancroft Discounts: $150,000.00
  • Section 179 Deduction: $150,000.00
  • Total First Year Deduction: $150,000.00
  • 35% Savings on Equipment Purchase: $52,500.00
  • Lowered Cost of Equipment After Tax Savings: $97,500.00

 

Remember! Our calendar is almost full for 2018. Contact us today to get your welding machine shipped by the end of the year so you can take advantage of Section 179 expensing.  Visit www.section179.org for more details.

 

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section 179

Let BANCROFT help you take advantage of Section 179 Expensing

If you’re in the market for automated welding equipment of any kind, there has never been a better time to invest in innovation from Bancroft Engineering.  In addition to Section 179, for new orders received October 16 through November 6th, we are offering a 5% discount on all Welda-round and Weld-lathe machines.

seam weldingseam welding

 

 

 

 

 

 

 

 

 

 

 

 

We would like to remind our customers that Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179) has been restored to $500,000 for 2017. This means businesses that purchase up to $2 million in qualifying equipment can deduct up to $500,000 from their 2017 taxes.  To qualify the equipment must be:

  • Installed and placed in service during the same tax year
  • More than 50% of the use of the equipment is for the business

 

In addition, a bonus depreciation is extended through 2019 for all businesses who have purchased over $2 million in equipment. These businesses will be able to depreciate 50% of the cost of the equipment they purchase and put into production during the years 2015-2017. This bonus depreciation will reduce to 40% in 2018 and to 30% in 2019.

 

seam welding

 

How does all this work? Our accountants have provided us with the following examples to help explain it:

When a company buys equipment, whether by a cash purchase or by financing it, the company typically spreads the expense over several years through depreciation.  For example, if a company buys a machine for $100,000, the company can expense about $20,000 per year through depreciation for 5 years. Section 179 allows that company to expense the entire $100,000 during the current tax year if there is sufficient income to offset the expense, thereby accelerating the tax savings.

 

Section 179 Example

  • Cost of Equipment after all Bancroft Discounts: $150,000.00
  • Section 179 Deduction: $150,000.00
  • Total First Year Deduction: $150,000.00
  • 35% Savings on Equipment Purchase: $52,500.00
  • Lowered Cost of Equipment After Tax Savings: $97,500.00

 

Act now to affordably take your business to the next level

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