According to Balboa Capital’s Section 179 tax deduction survey, three in four small business owners are using Section 179 to deduct cost of qualifying business equipment that was purchased or financed in 2016. In addition, eight in 10 small business owners plan to invest in new or upgraded capital equipment in 2017.
“A large number of small business owners acquired equipment last year with plans to expense all or portions of the cost under the Section 179 tax deduction,” said Jake Dacillo, marketing director at Balboa Capital. “In the weeks leading up to the Section 179 deadline on December 31, we received a considerable amount of inquiries from small business owners who needed equipment financing with a rapid turnaround. With our simple application process, instant credit decisions and same-day funding capabilities, we helped them secure the financing they needed before the Section 179 cutoff date.”
Key findings of Balboa Capital’s Section 179 survey:
Although last year’s Section 179 deadline has passed, small business owners can still take advantage of it in 2017. The current deduction limit is $500,000 for qualifying equipment that is purchased or financed and put into business use this year. There is also a first-year bonus depreciation of 50% which is scheduled to decrease to 40% in 2018.
“80% of business owners who responded to our survey plan to invest in capital equipment this year,” Dacillo said. “Based on the growing awareness of Section 179’s benefits among business owners, we expect a number of them to elect this business-friendly IRS deduction for their equipment purchases.”
Monitor 100 2017
The new lease accounting rules, ASC 842, are a major change for lessee customers. The rules are complex and will require lessees to do things they have never done before. Activity has lulled anticipating the transition occurring in 2019 for... read more
Monitor 100 2017
Equipment finance companies are responsible for financing a substantial portion of U.S. businesses’ capital expenditure budget through various channels of financial products. While these lenders can fund themselves in multiple wholesale financing markets, the asset-backed securities (ABS) market has proven... read more