Financing

Question 1

What is IRS Section 179?

Accepted Answer

IRS Section 179 is a tax code allowing businesses to deduct the cost of qualifying equipment acquired in the year it's placed in service, rather than deducting it in smaller amounts over 3+ years.

Question 2

Why should I utilize IRS Section 179?

Accepted Answer

Using IRS Section 179 lets you deduct a significant portion of your equipment cost, up to the annual inflation-adjusted limit, in the year of purchase. This reduces your taxable income upfront, improves cash flow, and keeps more money in your pocket for other business needs.

Question 3

How can I utilize IRS Section 179?

Accepted Answer

To qualify, equipment must be purchased or financed and placed in service between January 1 and December 31 of the tax year. You can claim the full deduction even if the purchase was financed. A great way to start is to use the calculator and get pre-qualified by filling out our form so that we can help. Getting prequalified doesn’t impact your credit score.

Question 4

Do I need IRS Section 179 to finance my equipment?

Accepted Answer

No, your NOVAIR equipment can still be financed with Reliant Capital without using Section 179. Speak with a representative to learn more about your financing options.

Question 5

Are there limitations to IRS Section 179 tax savings?

Accepted Answer

There are a few key limitations to be aware of:

The maximum deduction amount is set annually, adjusted for inflation. Check the current year's IRS limit when planning your purchase.
 	If total equipment purchases for the year exceed the annual spending threshold, the deduction begins to phase out dollar-for-dollar.
 	The deduction cannot exceed your total taxable business income for the year. IRS Section 179 cannot be used to create a net loss.

Question 6

How does IRS Section 179 differ from Bonus Depreciation?

Accepted Answer

IRS Section 179 is optional and typically applied first to specific assets. Bonus Depreciation applies to an entire class of assets, which can include those which exceed Section 179 limits.

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Understanding IRS Section 179