The taxman cometh…but now he can have a place to sit down when he gets here.
With the home stretch of the year upon us, Ethosource account executive Sarah McDaniel tells Bisnow that now is the time to upgrade on office essentials like furniture.
“If it’s been a profitable year for your company, take note of Section 179 of the tax code,” Sarah says. “It allows for accelerated writing off of assets. By speeding up the ability to write off purchases, a business can legally reduce tax liability.”
Sarah explains that before Section 179, a business could still offset the cost of necessary purchases, however it had to spread the balance across a five-year span at 20% per year.
Times, and laws, have changed. Now, businesses can write off up to $500k in asset purchases for the applicable tax year. Thus, any furniture that is ordered, delivered and installed prior to New Year's Eve can be written off for 2016.
Likewise for 2017, so making it your New Year's Resolution to take advantage of this tax break is certainly not a bad idea.
Let’s say you’re on pace to bring in a net income of $100k this year and that you’re in a 35% tax bracket. You owe $35k to Uncle Sam by springtime, right? Not necessarily.
By upgrading your office with $100k of furniture or other needed fixtures, your net income is balanced out and that tax due is now based off a sum of $0.
If you were planning on making upgrades, the time to do so may be sooner rather than later so these savings can be enjoyed. If those upgrades are to the company’s furnishings, checking in with Sarah is another wise move.
"I can help clients understand Section 179 and how businesses can benefit, as well as get them in touch with our financial partners,” Sarah says. "It's an aspect of our shopping experience that sets us apart from competitors."
“I have personally worked with Ethosource for over eight years," Horizon Keystone VP Jim Wall says. "They are truly consultative sales professionals that will hold your hand through your office move or expansion. You couldn’t be in better hands with their staff.”
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