Grow Your Assets and Save on Taxes

posted on Wednesday, October 16, 2019 in Blogs

Learn how Section 179 and Bonus Depreciation can save you money while you grow your fleet this tax season!  Section 179 allows for tax advantages on the purchase of new and used equipment. However, there’s actually more than one advantage! In fact, there are two key tax benefits. Download this PDF flyer for more information: tax_advantages_through_2026 The first key tax benefit is Section 179. Section 179 provides the allowable deduction limit of $1,000,000 on the cost of new and used capital equipment purchased with an investment cap of $2,500,000. The second tax advantage is Bonus Depreciation. Bonus Depreciation can be combined with the Section 179 deduction for additional savings! It enables you to take additional depreciation on new and used (new to you) capital equipment purchases. Bonus depreciation is currently scheduled to phase out over the next 10 years. In fact, equipment placed in service September 2017 through December 31, 2022 has bonus depreciation of 100%. However, every year thereafter, that bonus depreciation decreases by 20%. Starting January 1, 2027 and on, the bonus depreciation will be 0%. The Tax Savings using Section 179 alone is $320,000. Meanwhile, the total first-year tax savings using both Section 179, and Bonus Depreciation, is $480,000! The intended purpose of this tax benefit was to stimulate the economy. The money you save in the short term can be reinvested in capital improvements, expansion projects, and more, so don’t wait — buy that new or used equipment today! Click this link to see financing options available through John Deere Financial.