Do you have a customer who wants an LED sign, but is hesitating to buy? Tell them that there may be tax benefits for their business if they install a new sign. Section 179 of the IRS Tax Code may offer additional return on investment and tax benefits to their business.
What is Section 179?
This section of the IRS Tax Code allows small businesses to deduct the full price of qualified equipment from their taxable income. If they lease or finance the equipment, the tax savings may even exceed the first year’s payments, and it gives small- to medium-sized businesses the ability to grow and add other needed capital equipment.
The equipment must be installed and put into service during the same tax year.
Section 179 is a great way to accelerate tax benefits. Under Section 179, your customers can expense 100% of the cost of equipment up to $500,000, as long as it is put in service in 2016. Depending on your customer’s tax bracket, they can save a portion of that equipment cost in tax savings.
Also, as part of Section 179, businesses can take advantage of Bonus Depreciation. This deduction is available through 2019 and for equipment put into service in 2016 and 2017, businesses can depreciate 50% of the cost of the asset during that tax year.
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NOTE: Although available for all businesses, please advise your customers to consult their CPA or tax professional for their specific business situation.
Also visit Section 179.org