Section 179 Tax Code

USING THE SECTION 179 TAX DEDUCTION FOR PURCHASING EQUIPMENT COULD BE THE SMARTEST FINANCIAL DECISION YOU MAKE THIS YEAR.

Section 179 of the tax code offers substantial benefits to businesses who purchase equipment and machinery before the end of the year.*

With the advances in automation, IIoT, and collaborative robotics, now is an ideal time to invest in equipment that will improve your productivity and profitability. The 2019 Section 179 tax provision allows qualifying businesses to accelerate depreciation on purchases of equipment, technology, software and other business items.  When you finance such purchases, you can deduct a significant portion, up to $1,020,000 infactory-equipment 2019. Additionally, for 2019, bonus depreciation remains at 100% on qualifying assets. You can also apply the Section 179 deduction and or bonus depreciation to financed equipment, as well. Choosing to finance your purchase of equipment can help your company save when the finance agreement enables you to take advantage of Section 179.

Not only will Section 179 help bolster your bottom line, but you’ll gain the benefits of new equipment and technology. But you’ll need to invest now, because to capture these tax savings, qualifying property must be placed in service before December 31, 2019.

Section 179 Offers Deductions on Automation Equipment, Industrial Computing, Robotics and more:

  • Automation Components and Equipment
  • Robotics
  • UR Collaborative robots
  • Robotic accessories, End-of-Arm Tooling, Grippers, etc
  • PLCs and HMIs
  • Remote monitoring equipment
  • Industrial networking equipment
  • Sub-Assembly or Control Panel Projects 
  • Industrial Rugged Computers, Panel PCs, Embedded Computing, etc.

If you need financing, we can introduce you to Ascentium Capital, our preferred lending provider. And we can help you select the right equipment at the right price before the end of the year deadline.Contact us today! Call (866) 397-7388 or email us.

Potential Savings with Section 179 Deduction (tax savings example):

section-179-savings

Big Benefits for Leasing and Financing Equipment

When it comes to leasing or financing equipment, the Section 179 deduction might be the most profitable decision you make this year. A clear advantage to leasing or financing is that you can deduct the entire amount without paying the full amount this year.The Section 179 deduction extends to financed and leased equipment. The example below shows estimated monthly payments for $138,000 equipment purchase using the online calculator from Ascentium Capital.

Use this easy, 3 step calculator to estimate monthly payment terms.

section179-calculator

According to Ascentium Capital, a leading provider of equipment and technology financing solutions, “Tax provisions accelerate depreciation on qualifying business equipment, office furniture, technology, software and other business items. When you finance such purchases with Ascentium Capital, you may deduct a significant portion, up to $1 million in 2019 (to be adjusted for inflation). There is a dollar-for-dollar phase out for purchases over $2.5 million. Additionally, bonus depreciation has increased from 50% to 100% on qualifying assets. Consequently, not only will Section 179 help bolster your bottom line, you garner the benefits of new equipment and technology that will help grow your business.”

Ascentium’s flexible structures combined with 100% financing means you avoid substantial out of pocket costs.

Now is an ideal time to invest in equipment that will improve your productivity and profitability. Our engineers can help you select the right products at the right price – all within the end of the year deadline.

Speak with an MSI TEC Engineer at 866.397.7388 or send an email. The deadline to take advantage of the Section 179 deduction is December 31, 2019. That means equipment must be purchased and placed into service by the end of the year.

Find more information on Section 179 and leasing and financing options:

*MSI Tec, Inc and its affiliates do not provide tax or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or legal advice. You should consult your own tax or legal advisors before engaging in any transaction.