Tax Benefits

We Could Save You Money

Did you know…

By purchasing A/V equipment from California Media Solutions, Inc you could be eligible to receive the 2019 Section 179 Tax Deduction, which can lead to up to 30% more savings. You may also qualify for up to 100% of a first year tax write off based on Section 179.

 

As defined by the Internal Revenue Service (IRS), depreciation is an income tax deduction that allows a business to recover the cost basis of tangible property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property. Most tangible assets, such as demountable walls, are depreciable. When researching ways to save, the modified accelerated cost recovery system (MACRS) is beneficial deduction method to consider, since faster acceleration allows individuals and businesses to deduct greater amounts during the first few years of an asset's life, and relatively less later.


Businesses that purchase, finance, or lease under $2.5 million of new and/or used equipment between January 1st and December 31st of 2019 may be qualified to receive these benefits. Even businesses with net Loss can be qualified to deduct some of the cost of new equipment and carry forward the loss. Although this seems to be a true “small business tax incentive”, businesses are still able to qualify for bonus depreciation once that cap has been met.

 

What’s the difference between Section 179 and Bonus Depreciation?


Bonus depreciation is offered some years, and some years it isn’t. Right now in 2019, it’s being offered at 100%!


Bonus Depreciation is useful to large businesses spending more than the Section 179 Spending Cap. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business had no taxable profit, because the unprofitable business is allowed to carry the loss forward to future years.

Remember to always check with your financial advisor before making tax decisions and visit Section179.org for more information.


See Examples of Section 179 Gains!

Information pulled from https://www.section179.org/section_179_calculator/. Visit them online to view your potential cash savings. This image of the Section 179 Calculator fully reflects the current Section 179 limits and any and all amendments / bonus depreciation.