Section 179: What You Should Know
Making the right choices for the future of your business can be a complicated experience. In order for you to see success you’d like, you need to take time to consider all of your options. Many business owners find that taking advantage of what is offered by Section 179 when tax time rolls around. One way to qualify for this is by leasing equipment related to your business instead of buying it. Equipment leasing can have a number of benefits for your company.
To reap the benefits associated with Section 179, now is a great time to look into the details surrounding leasing. Explore these points to discover the power of this service and how it might be able to help you in the future.
Your business requires several key things to stay operational. Above all else, it needs capital. Without available capital, you might find yourself in a very difficult predicament. Not only will it be hard to cover the basic expenses of your company, you won’t be able to take advantage of opportunities for growth without available funds. One way that equipment leasing benefits your business is by providing you with the chance to hold onto your capital for longer.
When you make the decision to buy equipment outright, you are often spending a significant chunk of change in one swing. Though you get to reap the benefits of owning the equipment, you might be hitting your budget harder than you’d like. By leasing, you will spend a small percentage and still be able to take advantage of the equipment. This can be a huge help for companies looking to save money for future endeavors.
Determining whether or not Section 179 is applicable to your equipment leasing situation, you need to familiarize yourself with some of the standards. Though most equipment and leases will be fine, the IRS is not likely to find your business eligible if the equipment you are leasing becomes yours at the end of the lease. This asset acquisition changes the way the equipment is viewed by the IRS. Learn the specifics by speaking to your financial advisor about the choice.
Taking advantage of the right tax programs can be a huge help for the future of your company. To become eligible for Section 179, equipment leasing could be a helpful service to explore. By looking into this option, you are giving yourself the chance to save a bit of money while simultaneously getting the right equipment and machinery for your company’s operations.