A business that finances qualifying equipment will still have the opportunity to take full advantage of the Section 179 tax deduction. Doing so is seen as a financial strategy to the bottom-line operations as this allows you to acquire equipment while making smaller payments, preserving much-needed cash flow.
While minimizing out-of-pocket expenses, the business can deduct the full amount of the equipment (and/or software) without paying the full cost in the year acquired. Deductions in this manner can actually allow you to save a higher amount of taxes because the total write-off can actually exceed the full year payment amount for the equipment.
Can I take advantage of tax benefits? Blake Russian2018-10-04T21:30:40+00:00
Taking advantage of the Section 179 deduction tax savings is not automatic through the IRS. A company must fill out form 4562 when filing taxes for the 2018 year, regardless if you are filing on time or through an extension. All Section 179 deductions are taken on an item by item basis, meaning you do not have to elect it on all qualifying equipment that was purchased and used in the 2018 tax year.
How can financing improve my business cash flow? Blake Russian2018-10-04T21:31:26+00:00
Get the equipment needed to grow your business today while spreading payments over time. Financed equipment can create income that exceeds the cost of the monthly payments. Let your new equipment pay for itself while you earn additional income. Save your cash for other critical business expenses.