We have partnered with Marlin Horizon Keystone Group to provide specialized financing for HVAC and Building Controls upgrades. In many cases, we can consider requests up to $200,000 with just a simple application and credit decisions in less than 24 hours.
Financing offers many advantages, including tax advantages. One of these is IRS Section 179 and Bonus Depreciation. Here’s how it works:
The deduction limit for Section 179 is $1,000,000.
- This means that if you buy (or finance) a piece of equipment, you can deduct the Full Purchase Price (up to $1,000,000) from your gross income.
The 2020 Section 179 deduction threshold for total amount of equipment that can be purchased is $2,500,000.
- This means that you can purchase more equipment and still have the benefit of the Section 179 deduction. BONUS DEPRECIATION: 100% for 2020 New and Used Equipment Allowed
- Under Modified Accelerated Cost Recovery System (MACRS) Bonus Depreciation has increased first-year depreciation deduction to 100% (vs. 50%) of the adjusted gross basis of qualified property.
- This goes into effect for assets placed in service after September 27, 2017 and before January 1, 2023.
- Another significant change under the new tax law, is you can use bonus depreciation for purchases of new or used property. Under prior law, you could only use bonus depreciation for new property.