Tax Benefits of Turf Equipment Purchasesedit
It’s that time of year again-the time when your accountant lets you know how much you’re going to owe in taxes to Uncle Sam. And if you are based in Illinois, you may want to get in touch with a tax accountant chicago to help with your payments. If your accountant is worth the money you pay him, one of the questions he’ll be asking you is whether or not you qualify for any section 179 tax deductions for 2015. In order to help you impress your accountant, someone similar to Dave Burton by actually knowing what the heck he’s talking about when he asks you that question, we’ve prepared a few FAQs about section 179 and the possible tax benefits of turf equipment purchases.
What is a Section 179 tax deduction?
Essentially, section 179 of the IRS tax code allows a small business to write off the entire cost of certain types of equipment and software as a deduction from your gross income. So, if you purchased a new fairway mower in 2015, you may be eligible for a section 179 tax deduction.
How does Section 179 work?
Usually, when your business buys a piece of equipment, you can only write off a portion of the cost of that equipment each year for a certain number of years. However, in an effort to encourage businesses to buy more equipment and thus stimulate the economy, the government is allowing small and medium-sized businesses to write off the entire cost of certain types of equipment.
What are the restrictions to a Section 179 deduction?
There are limits to how much you can deduct using Section 179. In 2015 the most you can deduct is $500,000.
Who qualifies for section 179?
Any business that purchased or leased less than $2 million in new or used equipment in 2015 should qualify for this deduction. Qualifying equipment includes software, computers, and of course vehicles such as turf equipment. Click here for a full list of qualifying equipment.
For more information, download this flyer distributed by the Toro Company about section 179 deductions, or use this calculator to see how much you can save this year. Of course, you’ll want to consult with a qualified tax professional to find out whether or not you qualify for a section 179 deduction-but at least now you’ll be slightly better prepared when you bring this subject up with your accountant.