Section 179 Deductions and Bonus Depreciation have been used extensively in the construction industry. Both grant your company big savings on taxes as a result of any major equipment purchases you’ve made in the tax year. Accounting and project management software is included in the equipment that qualifies, and it’s been one of the most popular routes that contractors have taken to seize this opportunity.
That opportunity, however, may be coming to an end. With tax law changes looming, this may be your last year to take advantage of historically high savings under Section 179 and Bonus Depreciation laws. That means that if you’ve been putting off purchasing new equipment or upgrading your software system, you’ll want to stop putting it off now! Starting January 1st, some of the major tax advantages of implementing those changes may disappear entirely.
If you want to learn more about Section 179 and Bonus Depreciation, or if you want more tips on what you should be doing to prepare for Year End, you may want to check out our recent construction accounting webinar on the topic, featuring Steve Hausfield, CPA who specializes in construction accounting.