BOSCH AND KEYSTONE SALES & ASSOCIATES BRING SUMMER’S HOTTEST PHVAC TOPIC TO LIFE

  (Pottstown, PA – July 18, 2018) Inverter Ducted Split System (IDS) Heat Pumps are an excellent source of energy-efficient heat for homes, with the added benefit of cooling in the summer months. With significant savings over electric heat, and their ability to reduce energy bills without changing the comfort level of homes or offices, PHVAC professionals are seeking more intensive product training to meet […]

KEYSTONE SALES & ASSOCIATES NAMES PAUL THIEBERGER NEW TERRITORY SALES MANAGER, VIRGINIA AND NORTH CAROLINA

Thieberger’s Ten Years of PHVAC Experience Expected to Help Manufacturer’s Representative Grow New Mid-Atlantic Territories   (Pottstown, PA — February 27, 2018) Keystone Sales & Associates (KSA) announces the hiring of plumbing, heating, ventilation, and air conditioning (PHVAC) industry veteran, Paul Thieberger, to the position of Territory Sales Manager. Thieberger is charged with expanding the company’s […]

Section 179 Tax Deduction

For the 2016 tax year, the Section 179 Tax Deduction Limit has been raised back to $500,000, the increased level in effect in 2013 and is not reduced until the cost of section 179 property placed in service exceeds $2 Million.

Understanding The Section 179 Deduction. Click this link to see how Section 179 can benefit your business in 2016.

What you should know:

  • 2016 is a great year to buy and save on used machinery!
  • 2016 Expense Deduction Limit has been raised to $500,000
  • 2016 Limit on Capital Purchases = $2 Million
    Section 179 Threshold for total of equipment & software that can be purchased has increased to $2 Million (threshold would have been only $500,000 prior to the new legislation).
  • 2016 Bonus Depreciation = 50%
    The new law allows 50% “Bonus Depreciation” on qualified assets placed in service during 2013 and 2014.

Please note:

  • Section 179 Deduction applies to most new and used capital equipment, and also includes certain software.
  • Bonus Depreciation only applies to new equipment (no used equipment, no software)

When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in the given tax year.

Sample Savings*

Original Equipment Cost: $500,000

2016 Potential Tax Savings: $175,000

Final Equipment Cost: $325,000

Cash Savings on Equipment Purchase: $175,000

*Assuming a 35% tax qualifying purchase

 This information does not constitute tax advice. Please check with your tax advisor on how this applies to your business.