If you’re looking to purchase and install a new waterjet, do so before December 31 to take advantage of the new Section 179 deduction limits set for 2018 capital expenses. This tax deduction was recently increased to $1,000,000 for 2018 and beyond, and applies to capital expenses on purchases based on the current year instead of a depreciation schedule.
There was also an increase made to equipment purchases, now set at $2,500,000. This includes new and used equipment, as well as off-the-shelf software. After you reach this limit, the deduction will phase out on a dollar-for-dollar basis.
Bonus appreciation was increased from 50% to 100%, retroactive to September 27, 2018 and extends through 2022. You can now use it for old as well as new equipment, with no spending cap.
The chart on the right shows the calculation made on equipment purchases of $1,150,000, with a total cost savings of $402,500. To see what your tax write off will look like, use the 2018 Section 179 Tax Deduction Calculator.
For more information on the benefits of Section 179, visit section179.org.
Ready to make a purchase? Complete our online contact form or call 1-844-WARDJET. We’ll help you find the best waterjet cutting solution for your business so you can start saving today.