Machinery is expensive. Obviously. Even the smallest piece of used equipment is going to be quite an investment, so making the most of every dollar is imperative to any machine shop, and for the small shop owner it's absolutely imperative to save every penny you can. Luckily, if you know the right tricks, you can potentially save thousands on any new or used machine purchased, and Section 179 is one of the most important ones to know.
Anyone purchasing machinery in 2017 should know about section 179. The tax code was created specifically to provide incentives for re-investment to any business purchasing (or leasing) business equipment by allowing them to deduct the full amount of the purchase price of equipment in the year it was purchased (up to certain limits)—including machine tools. The section can apply to any piece of equipment used in your business, as well as off the shelf software, so long as it was purchased after January 1st and is placed in use by December 31st of 2017. The write off was expanded to its current $500,000 in 2015, though its unknown how long it will remain this high, so take full advantage of it while you can.
179 is easy to use and can significantly reduce the cost of buying new equipment. For more information about filling out a section 179 form check out section179.org.
If you're looking to buy used machinery eligible for the section 179 deduction, consider checking out Machine Tool Bids' large catalog of used machinery.