If you run a small business - or want to start running a small business - taxes are always an important challenge to consider. You have to know where you can take tax breaks and where they don’t fit your organization. What many small CNC business owners don’t realize is the value of Section 179, and that Tormach machines, even though they are inexpensive, qualify as capital equipment.
Year-End Savings – No Payments for 90 Days
Tormach’s mission is to help you grow and with Geneva Capital's special year-end finance promotion, we can’t think of a better time for you to make that new equipment purchase! Through December 31, Geneva Capital is offering deferred payments for 90 days (in addition to HUGE Section 179 tax savings!) on Tormach's full lineup of machines and equipment. Visit our financing page and watch the video for more information.
Section 179 Explained
Before Section 179 came into effect, businesses had to write off equipment purchases through depreciation. That meant that if you spent $30,000 on a machine this year, you would write off how much that machine depreciated each year following.
With Section 179, businesses can write off the entire purchase price of qualifying equipment for the current tax year, so long as that machine is delivered and installed on or before December 31, 2023.
The Rules of Section 179
Like any legal or tax related topic, consult a professional before assuming any of this applies to you and your business. That being said, Section 179 says that any equipment bought and put into service before the end of the year (up to $1,050,000.00), can be written off on your 2023 taxes.
Here are the key rules of the deduction:
- Your machine must be delivered and put into service by December 31, 2023
- Your business needs to have a minimum level of pre-tax income.
- You can’t write off more than $1,050,000.00
That means you can buy the Tormach machine that you need to add capabilities to your business, and get the tax deduction for the full cost of your equipment purchases, dollar for dollar against your income, as long as it is put into service this year.
You can start making chips and making money, while also saving on taxes, before spending a dime of capital on the machine! Keep in mind that your machine needs to be making parts before the end of the year to qualify for Section 179, so supply chain challenges need to be taken into consideration.
Start building your no-obligation quote today!
*These general numbers are based on Section 179 documentation, and can not be used as a quote. For more information, visit Section179.org or contact your tax professional.
