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A Brilliant Deduction (Section 179)

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Posted On: February 12, 2019 by Falcon National Bank in: Business Banking

November and December are always busy months in the world of Commercial Equipment Financing. At the urging of their accountants, many of our customers rush to make last minute yearend equipment purchases. Why the big rush you may ask? Well, My Dear Watson, it comes down to the fact that they are running out of time to take advantage of the SECTION 179 TAX DEDUCTION. What is the Section 179 deduction? Most people think Section 179 is some complicated and mysterious tax code. Truth is, it is really quite Elementary. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. Section 179 is an incentive created by the U.S Government to encourage businesses to buy equipment and invest in themselves. How Section 179 works: In the past when your business

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