Get 2015 Tax Break on Purchase of Insulation Installation EquipmentOctober 30, 2015
Somehow the idea that the Internal Revenue Service, or the IRS, has some good news for you may provoke serious skepticism. Or even derisive laughter.
Capitol Machine understands the trepidation professional insulation installation professionals may experience when contemplating the long rolls of red tape the agency often requires.
But we have some good news, especially for those business owners considering expanding their operations or upgrading their equipment.
Section 179 of the agency’s tax code allows business owners to deduct the entire price of equipment purchased this year, according to Section179.org. The tax code provisions apply only to purchases made this calendar year, before Dec. 31, 2015. The code applies to financed or leased equipment and off-the-shelf software.
Section 179 stipulates that the equipment must be put into use in the same calendar year as the purchase, which means when you buy the Model 125 Insulation Blower, with its adrenaline-pumping series 4 positive displacement blower, you have to put it to use for business purposes before the end of 2015.
Section 179’s deduction limit is $25,000, according to Section179.org. This year’s equipment purchase spending cap is $200,000, making the provision a very robust “small business tax incentive.” This year’s code lacks previous tax years’ bonus depreciation, which took effect only after the spending cap was reached.
In introducing section 179 of the tax code, the IRS states: “You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service.… You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions.”
The IRS describes equipment that qualifies for the deduction:
- It must be eligible property.
- It must be acquired for business use.
- It must have been acquired by purchase.
The IRS states that eligible property under section 179 includes:
- Machinery and equipment (which includes Capitol Machine equipment).
- Property contained in or attached to a building, such as refrigerators, grocery store counters, office equipment, printing presses, testing equipment and signs.
- Gasoline storage tanks and pumps at retail service stations.
- Livestock, including horses, cattle, hogs, sheep, goats, and mink and other fur-bearing animals.
Section 179 expands the qualifying equipment eligible compared to previous year’s bonus depreciation which covered only new equipment. That means your purchase of used insulation installation equipment is also eligible for the tax deduction under section 179.
Did you find this information helpful? Do you have tips of your own you’d like to share? We at Capitol Machine also offer a wide variety of insulation machines, insulation blowers and insulation removal vacuums. Contact us with questions or for more information.