Certainly anything tax related consult a professional but we got an interesting piece of promotional material from our friends at Jet & Powermatic about buying equipment. We thought we’d pass on as many tool users are also small business owners. We were not aware you can deduct up to $500,000 (for 2016) for tools, equipment and even “business-use” vehicles under section 179. Average business tax rates are 35% so if your business is having a good year it might be time to consider purchases. The end of the year is also when all the Holiday Deals hit so a nice time to consider purchases.
There is an entire .ORG website dedicated to Understanding Section 179 which if you are interested you can learn more there. Also they have a calculator to figure out what deductions can be taken for savings. Talk to your tax professional to see how this applies to you.
