As the year-end approaches, 70% of US small business owners plan to use a special tax break to deduct the cost of eligible business equipment that was purchased or leased in 2017.
In addition, 60% are planning to invest in new or upgraded equipment in 2018, according to research by equipment leasing company Balboa Capital.
Its annual ‘Section 179 Tax Deduction Survey’ is designed to gauge small business owners’ familiarity and usage of this IRS tax code and was sent to a sample of small business owners (SBOs) in a variety of industries nationwide in December 2017.
Carla Freberg, vendor services manager at Balboa Capital, said: “We see that a significant amount of small business owners are planning to take advantage of the Section 179 tax deduction as the year comes to an end.
“They are evaluating their unused budgets and moving forward with equipment purchases to meet the Section 179 deadline on December 31.”
Balboa Capital’s Section 179 survey identified business vehicles as the number one item that SBOs purchased in 2017, followed by machinery equipment, business computers, office equipment, heavy equipment, printing equipment, office furniture, and off-the-shelf software.
The research also showed 40% of SBOs would have bought or financed more equipment in 2017 if they knew the Section 179 tax deduction limit was $500,000.
