1851

It&#8217;s not always easy for small businesses to get ahead in a big business world. But now, thanks to Congress passing a massive tax and spending bill, they can at least permanently reap the rewards of a large tax break for their capital investments. <a href="http://www.nytimes.com/2015/12/24/business/smallbusiness/small-businesses-get-a-permanent-tax-break-on-buying-equipment.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=small-businesses-get-a-permanent-tax-break-3206" target="_blank" rel="nofollow" target="_blank">According to a recent article in The New York Times</a>, the break is intended to make it more affordable for small companies to buy up to $500,000 a year worth of equipment, like computers, machinery and vehicles. Known as the Section 179 deduction, the tax provision allows qualifying capital items to be written off immediately on a business&#8217; taxes, instead of being depreciated over a number of years. This ultimately lowers a business&#8217; taxable profits and lowers their tax liability. In other words, the deduction, which is limited to small and midsize companies, works like this: If a company has a $90,000 profit and decides to spend $50,000 of it on new computers, the company would normally write off the cost of the equipment gradually, deducting a portion of it each year over the span of the computer&#8217;s useful life. But Section 179 allows the business to deduct the entire $50,000 cost at once in the year the equipment is purchased, reducing the company&#8217;s taxable profit to $40,000. Section 179 was once a limited tax break, with an annual cap of $25,000 or less. But in 2003, Congress temporarily raised the limit to $100,000. When the recession set in during 2008, they raised the cap again to $250,000. Then, in 2010, in an effort to stimulate more spending, Congress increased the limit to $500,000, allowing businesses to use the deduction toward more expensive items. So should small businesses consider taking advantage of this deduction? According to Sean Fitzgerald, <a href="http://nolimitagency.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=small-businesses-get-a-permanent-tax-break-3206" target="_blank" rel="nofollow" target="_blank">No Limit Agency*&#8217;s</a> Chief Development Strategist, they absolutely should. &#8220;Locking in this tax break is another sign of positive movement forward in the world of small business. When people realized just how much this tax break helped smaller companies, Congress made the right move in making it permanent,&#8221; Fitzgerald said. &#8220;When we also consider how most franchises fall into that same small business category, this announcement is very good news for franchisors and franchisees as well.&#8221;<div><a href="http://www.nytimes.com/2015/12/24/business/smallbusiness/small-businesses-get-a-permanent-tax-break-on-buying-equipment.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=small-businesses-get-a-permanent-tax-break-3206" target="_blank" rel="nofollow" target="_blank">Click here to read the original article.</a> &nbsp;</div>

1851 Franchise

By locking in a tax break for small-business capital investments, businesses have a better shot at lowering their tax liabilities. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Small Businesses Get a Permanent Tax Break  

small-businesses-get-a-permanent-tax-break

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service representative giving presentation

Strategic Partnerships Fuel Franchise Growth at HomeTeam Inspection Service

hometeam-inspection-service-franchise-growth-partnerships

Express Employment Professionals

What’s in the 2025 FDD? A Closer Look for Express Employment Professionals Franchise Buyers

whats-in-the-2025-fdd-a-closer-look-for-express-employment-professionals-franchise-buyers

petbar

How-petbar-Makes-Pets-and-Their-Owners-Happy-as-Part-of-the-Family-in-a-Clean-and-Fun-Environment

How petbar Makes Pets and Their Owners Happy as Part of the Family in a Clean and Fun Environment

petbar-franchise-opportunity-boutique-pet-grooming

petbar Franchisees Win the $6.89B Global Market With Complete Transparency, Self-Service and Membership Models, Creating the Happiest Place for Dogs

petbar-franchise-opportunity

Why petbar Wants to Be the “Disney World for Dogs” — and a Dream Business for Franchisees

petbar-franchise-dan-ashley-o-loughlin-qa

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

Small Businesses Get a Permanent Tax Break

MORE STORIES LIKE THIS