Bob-Necessary_904x700px

 

 

 

 

 

 

Bob Necessary
Chief Financial Officer / President, VeriStor Capital

Are you taking advantage of the bonus depreciation incentives offered by the Protecting Americans for Tax Hikes (PATH) Act of 2015? It includes an extension of bonus depreciation applicable to assets acquired, including those via lease agreement, through the year 2019. This means that businesses are able to depreciate an additional percentage of the cost of new equipment, including software, hardware and other technology that was acquired and put into service during 2015, 2016 and 2017.

This temporary tax incentive allows you to take an immediate, additional deduction from the investment of eligible business property and equipment. It’s a way of accelerating depreciation giving you an additional deduction of the cost of qualifying property – over and above the regular depreciation allowance that’s normally available.

How much can you deduct? The current bonus depreciation deduction rate is 50% through December 31, 2017. After 2017, the bonus continues to exist at the lesser rates of 40% in 2018 and 30% in 2019.

To fully leverage this incentive, lease qualified business property and put it into service the same year. This makes you eligible to take the bonus depreciation of the remaining basis immediately.

For those who already calculated a return on investment for IT equipment, without the bonus depreciation, this extra incentive can provide a rapid return. Once taken, depreciation will continue as normal for the remaining balance of the assets.

Want to see how it works? Read this paper on how to get the most value from your IT lease, then call us today at 678-990-1593. We’re experts in the IT leasing programs that preserve your cash flow while delivering greater predictability and flexibility for a healthy bottom line.

Save

Save

Save

Save