The new tax law holds many benefits for small to mid-sized businesses from a reduction in the permanent corporate income tax rate to new bonus depreciation incentives. Here are two big benefits that can help your business if you are looking to purchase or have purchased office equipment this year.
Depreciation deduction limits for equipment have been increased to $1,000,000 with cumulative deductions from equipment depreciation that now begin to phase out after $2,500,000. This is a BIG tax advantage! A growing business will need to invest in equipment and technology. Over the past two years, Congress has increased the amount you can depreciate, and the tax deductions associated with new office equipment and technology that will help your business grow and become more efficient. Be sure to ask your tax professional about all the ways you can lower your net cost of new equipment by leveraging all the new tax deductions available to you.
Equipment depreciation benefits now apply to the purchase of new and used equipment. Many businesses rely on the purchase of used print devices as a method of driving maximum ROI for their company. Previously, “bonus depreciation” deductibility was only allowed for the purchase of new equipment. This means that now the new tax law extends this benefit to any equipment that is “new to you” or used equipment purchase.