Used CERECs and the Section 179 Tax Deduction

You must pay taxes. But there’s no law that says you gotta leave a tip.

-Morgan Stanley

What is the Section 179 Deduction?

It is part of a tax stimulus package geared towards small businesses that allow you to deduct the full purchase price of qualifying equipment and/or software from your gross income as opposed to writing off a little at a time through depreciation. The maximum deduction limit in 2016 is $500,000.

What equipment qualifies for this deduction?

Most new and used “business equipment” purchased and put into use between January 1st and December 31st of the tax year you are claiming qualifies. This includes:

  • Equipment purchased for business use
  • Tangible personal property used in business
  • Business vehicles over 6,000 lbs
  • Computers
  • Computer software
  • Office furniture
  • Office equipment
  • Large manufacturing tools & equipment

Can I still deduct the full amount if I lease or finance the equipment?

Yes. This is actually a popular financial strategy among businesses because it allows you to deduct the full amount of the purchase without paying in full, which improves cash flow and increases profit margins.

Does used equipment qualify for bonus depreciation?

No. Bonus depreciation (50%) is taken after the $2,000,000 spending cap has been reached.

Where can I get more detailed information about this deduction?

Call (844) 385-4376 for help with a used CEREC purchase and take full advantage of the 2016 Section 179 tax deduction!


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