Commercial equipment leasing and finance industry publication, Equipment Finance Advisor, recently published an article from our CEO, Vernon Tirey, on the newly implemented tax law and its impact on small and medium businesses (SMBs) as well as the industry’s Principle of Duty. In the article, he discusses how SMBs can take advantage of the new tax law, particularly Section 179, and reap significant benefits.
Below is an excerpt from Vernon’s article:
The most valuable part of tax reform for small business owners is Section 179, which allows businesses to write off equipment expenses. The new Section 179 doubles the write-off for equipment from $500,000 to $1,000,000 for 2018 and beyond, and allows small business owners to depreciate up to 100 percent of new and used equipment in the first year. Even companies leasing or financing equipment can still take full advantage of the Section 179 deduction.
This provides a real opportunity for small businesses, whether you’re a restaurant, flower shop, landscaper or other business starting or expanding your operations. For example, consider a chef opening her first restaurant. She finances $820,000 in equipment for the kitchen and bar, TVs and audio, signage, point-of-sale (POS) systems, furniture and artwork. Under the old Section 179, the chef could only write off the cost of her back of house equipment – about $500,000. Now, she can write off 100 percent of the equipment for her restaurant, better manage her cash flow and begin serving customers sooner.
To read Vernon’s full article, please visit: http://bit.ly/2GLyL60.Google+