If “Section 179” sounds like a super boring piece of tax information, you’d be right. Mostly.
However, if you’re able to take advantage of it, Section 179 could be a great way to invest in your business while cashing in on some potentially game changing tax benefits. (*cough* Especially if you’re buying camera equipment *cough*)
Essentially, Section 179 allows you to make a business purchase (like a camera) that you put into use the same purchase year (buy in 2018 and use it to take photos in 2018), but instead of deducting a small amount of the purchase price over several years, you can elect to deduct the entire purchase price from your taxes that same tax year. This has the potential to significantly reduce the amount of taxes you have to pay for that tax year (maybe even to zero).
The idea behind IRS Section 179 is to encourage growth in the economy and to provide small businesses an incentive to invest in themselves.
Section 179 incentives have the potential to change every year, so time is running out to take advantage in 2018.
Of course everyone’s situation is different and there are some rules to consider, however if you’re already looking to invest in camera equipment and want to help lower your taxes in 2018, Section 179 may be something you could consider with your accountant.
Obviously we can’t offer any advice regarding tax deductions, however we certainly want to make photographers aware of as many devices as we can to help make good business decisions and be even more successful. If you’re interested in how you might be able to take advantage of Section 179, get in touch with your accountant.