The holiday season is upon us and while most bakers are focused on year-end desserts their accountants are sweating over year-end planning. We know that your number one focus is baking the best holiday treats in town, but don’t forget to take a few minutes to review the benefits of the year end planning Section 179 Tax Deduction.
YEAR END PLANNING SECTION 179 TAX DEDUCTION
The year end planning Section 179 Tax Deduction is designed to help small businesses acquire capital equipment by using a full deduction on the purchase price during the year that the equipment is put into operation. The so-called PATH Act (Protecting Americans from Tax Hikes Act) allows businesses purchasing less than $2 million of equipment in a calendar year to deduct up to $500,000 of the cost. An additional benefit allows a business to depreciate 50% of the purchase price of all equipment put into use during the calendar year.
These programs can only be used if the equipment is purchased and put into production during the same calendar year, so to take advantage of Section 179 in 2016 you must have the new equipment installed and operational by December 31st. Our FoodTools representatives have been helping bakery clients plan, purchase, and install equipment to be used for Section 179 benefits and if you have any questions about your specific bakery operation contact your regional representative.
Since we are merely humble bakery equipment manufacturers, we feel it best to hand over the rest of the tax advice to the experts. For more information about the Section 179 Deduction visit http://www.section179.org/ or contact your accountant to explore how buying a new FoodTools machine can benefit your tax returns.