The Tax Cuts and Jobs Act of 2017 includes several important business-related tax incentives for you to invest in equipment in 2017:
Section 179 Expense Deduction for 2017
The Section 179 Deduction Limit is
$510,000.
Under the Internal Revenue Code Section 179, up to
$510,000
can be deducted from your taxable income, if you acquire and place into service qualifying new and used equipment during
2018.
The deduction is reduced "dollar-for-dollar" once qualifying purchases exceed
$2,030,000
and it is completely phased out at
$2,540,000.
50% Bonus 1st Year Depreciation in 2017
50% bonus depreciation is available for qualifying new and used equipment purchased and placed into service after January 19th, 2017. This will allow you to claim first-year depreciation equal to 50% of the adjusted basis of "qualified property." The adjusted basis is generally the equipment cost minus the amount of any Section 179 deduction taken with respect to the equipment.
Depreciation Methods and Assumptions Used
The calculator assumes that equipment is purchased and placed into service after January 19th, 2025. It also assumes that Section 179 is elected, sufficient income is generated to support the Section 179 deduction, and bonus depreciation is applied to the remaining cost. Under these assumptions, 100% bonus depreciation replaces standard first-year MACRS depreciation.
Calculate Your Potential Deduction
Input Total Amount of Purchases you have made or plan to make in 2017
20.00% for Agriculture or Construction
