Section 179 Changes

What are the Section 179 Changes? Is it good news for PCO’s? Yes!

Section 179

Section 179 limits Increased to $500K and bonus depreciation provisions extended. Finally the tax extender bill is passed and in fact it has made permanent the limit of $500,000 of expensing certain assets based on certain criteria.  This is great news as it allows small businesses to plan their capital expenditures using the tax benefit as part of the calculations instead of best case worse case scenarios regarding the government’s inability to pass these extenders each year.  While they have been passed each year, they come down to the wire with last year December 13th, this year December 18th.

If you haven’t made purchases this year waiting to see if the bill would become law, you now have 13 days to take delivery on those assets.  If you’ve already made the purchases, you are in good shape.

The $500,000 is up from the $25,000 limit that would have been in effect if the bill had not passed.  In addition the bonus depreciation provision was extended until 2019 however it will be paired down over time.  All very good news!  For further explanation on how you can use Section 179 and bonus depreciation click here.

For more information about how we can help you understand your pest control business taxes and to learn more about our services, click here. Our accounting and bookkeeping staff stay up to date with the most important updates related to your pest control business.