Before the end of the year arrives, many companies are implementing their last quarter tax strategies. One substantial strategy is the use of the Section 179 deduction as a tax relief. Has your business planned to use Section 179 this year? If not, there is still a golden opportunity to do so now by purchasing or leasing equipment for your business.
Why The Last Quarter of 2016 Is Ideal
Once equipment is purchased and put into service before the end of Dec 31, 2016, it is entitled to the Section 179 deduction. Hence, small and medium-sized businesses are in prime position to write-off up to $500,000. Such a deduction could significantly reduce the taxes of some ventures. In fact several companies use this year-end deduction as a way to improve their bottom line. This technique involves buying or financing equipment and writing off the total price of the item. Often the tax savings from the deduction are in excess of the lease payments.
There is one danger in delaying an end-year purchase.
If the product is not put into service by December 31st, the item cannot be deducted. For instance, if a large computer server is ordered but does arrive until January 3rd, it would not be eligible for the 2016 deduction.
STRADA 179 Advantage
STRADA Capital serves businesses across a wide spectrum of industries and we have gained years of experience in helping businesses reap the benefits of Section 179. We have specialty FASTrack 179 programs that expedite funding and purchasing so that you can make the December 31st deadline comfortably. We offer a number of options for businesses seeking to make the most of this end year opportunity.
Are you ready to get leasing or funding for major purchases that are Section 179 eligible? Call our 179 specialistss today at (888) 979-0755. STRADA Capital can help your business take full advantage of this year’s Section 179 regulations.