AP Lazers qualify for tax deductions through Section 179
No one likes to pay their taxes. We don’t like sitting down to fill out and file them, we don’t like that we don’t immediately see any return on that money. Really, none of it is enjoyable. That may be the only part of Al Capone (who went to jail for tax evasion rather than for any of his mob related activities) to which we can all relate. Taxes are a necessary evil.
What if there was a way to exponentially increase your profits this quarter, and every quarter to follow, as well as legally get out of paying a large portion of taxes for your business?
Would you be interested? Of course you would. This article will cover a few things about Section 179 and how it applies to you and your laser machine purchase.
What is Section 179?
Long story short, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year.
Section 179 and AP Lazer Purchases
Until further notice, Section 179 is permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. All AP Lazer machine purchases qualify for Section 179, as long as you put your laser machine into use by the end of 2016.
When you utilize Section 179, your business can deduct the cost of your AP Lazer system up to $25,000. Any amount over the $25,000 qualifies for an additional “Normal First Year Depreciation”, which comes out to be roughly a $200 deduction per extra $1000. That’s kind of like a laser engraving machine discount, no codes required.
Check out your tax write-off for 2016
Section 179 can provide you with significant tax relief for this 2016 tax year, but equipment and software must be financed and in place by midnight December 31, 2016. Use this 2016 Section 179 Calculator to see how much the Section 179 tax deduction can save your company.
Section 179 and Leasing
What’s the best part though? Great question. Section 179 can be used in combination with our lease to own programs. You get the laser machine in your hands, start making money off of it, and you’ll get a majority, if not all of the deduction this year. This means that you’ll end up deducting more than you even pay in 1 year for your AP Lazer machine!
The above is an overall, “simplified” view of the Section 179 Deduction for 2016. For more details on limits and qualifying equipment, please consult a tax professional. More information about Secion 179 can be found at section179.org.