IRS Tax Code: Section 179 – 2016

Purchasing Print Finish Equipment? 2016 is the year to do it.

So, the US Government gives business tax incentives to spend money. Section 179 has been generous in the past, but not necessarily in 2015. Section 179 for 2016 is generous offering companies a tax break on capital purchases up to $500,000. That’s a pretty good deal.

So, how does it work?

Well, if you have been considering purchasing a new wide format laminator, a UV coating machine, or that large paper cutter, this is the year to do it. So, let’s take a look at what the estimated savings would be for big machines you could afford this year under Section 179.

Triumph 7260 Hydraulic Paper Cutter

Triumph Paper CutterThis is a great paper cutter. It’s a 28-inch programmable paper cutter with hydraulic clamp, power back gauge, electronic control module, and IR safety light beams on the front table. You can cut stacks of paper and have a perfect cut. It’s a high-cost cutter, but one of the best on the market.

If you take advantage of Section 179, this is what it would look like for you:

Cost of Equipment: $23,999.00

Section 179 Deduction: $23,999.00

Bonus Depreciation Deduction: $0
(updated to 50% via PATH Act of 2015)

Normal 1st Year Depreciation: $0
____________________________________________

Total First-Year Deduction: $23,999.00

Cash Savings on your Purchase: $8,399.65

(assuming a 35% tax bracket)

Lowered Cost of Equipment: *$15,599.35

Let’s take a look at another example for your print shop, a UV coating machine:

Tec Lighting 16″ TruCoat Auto Feed UV Coating System

With the 16” TruCoat auto feed UV Coating machine, you can pretty much do any project that comes through your door. With the auto-feed attachment included, you can automate the process further from print to coating.

Cost of Equipment: $23,900.00

Section 179 Deduction: $23,900.00

Bonus Depreciation Deduction: $0
(updated to 50% via PATH Act of 2015)

Normal 1st Year Depreciation: $0
____________________________________________

Total First Year Deduction: $23,900.00

Cash Savings on your Purchase: $8,365.00

Lowered Cost of Equipment: *$15,535.00

Have you been considering a wide format laminator? Here is one to consider:

D and K Expression™ 55 Plus Commercial Roll Laminator

The EXP 55 Plus Laminator provides a versatile laminating and mounting solution for sign shops and other graphic finishing industries. A top heated roller allows for single sided lamination of thermal or pressure sensitive films to self adhesive vinyls and related print media.

Cost of Equipment: $9,500.00

Section 179 Deduction: $9,500.00

Bonus Depreciation Deduction: $0
(updated to 50% via PATH Act of 2015)

Normal 1st Year Depreciation: $0
____________________________________________

Total First Year Deduction: $9,500.00

Cash Savings on your Purchase: $3,325.00

Lowered Cost of Equipment: *$6,175.00

So, if you are considering a machine purchase, this is the year to do it with a generous Section 179 deduction.

*These are estimates only. For exact saving, please consult your tax accountant.

Author: Garry Jones

is President of Lloyds of Indiana, an Online seller of print finishing products and services located in Indianapolis, Indiana. Garry is a thought leader in the ever changing landscape of marketing and printing.

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