The Small & Medium Business Equipment Tax Advantage of Section 179


Whether you are a small or medium business, the Section 179 tax code advantage for buying equipment for your business can go a very long way in your growth. Chiropractic practices, luxury spas, upscale salons, therapy offices and athletic centers can all benefit from this tax equipment advantage. It is literally writing off the purchase or finance of a new piece of equipment up to one million dollars in purchase price. Yes, a $1 million deduction from your gross income, with an equipment spending cap at $2.5 million.

This tax deduction is called Section 179, and it has become a huge advantage for small and medium businesses in 2019. It bolsters the growth of the wide range of services you can offer and potential income by allowing your business to purchase equipment that will serve your growth for years to come.

The equipment must be placed into service in the 2019 tax year, so there isn’t a lot of time left to make that purchase or financing of equipment. In past years, only partial deductions per year were allowed, so it took quite some time to be reimbursed for those larger equipment purchases. With Section 179 of the tax code, the ability to purchase and write off equipment such as salon chairs, cryotherapy machines, workout equipment, computers and much more is part of the tax code. [1]

The beauty of this tax code is that your gym, salon, medical office or spa can purchase much needed upgrades and be able to serve your clients and make you profits for the coming years. You can upgrade your current equipment and create a business that grows and expands into a larger service business. Whether a small purchase, such as a new nail station and printer, or a larger purchase such as a sauna for your spa, or a cryotherapy chamber for your clients, can be a much needed boost to compete in your current market.

Section 179 is a large benefit to small businesses today. The section does state that in order to qualify, your new equipment must be used for more than 50% of its use as a business purpose. Section 179 is a real incentive that is still available for your small cryotherapy business, and is helping the economy grow. This legislation was intended to offer real tax relief for smaller businesses, and it is definitely working.

Although it has its limits, such as the caps- $1 million for 2019, and limits the amounts for equipment purchased to $2.5 million and phases out after that, and ends at $3.5 million, it is a great deduction for those trying to grow their small business. Bonus depreciation currently covers new and used equipment, but it often is changed each year, so businesses must pay attention to the caps and qualifying equipment for depreciation in the current year (2019).

Section 179 tax deduction is available on some vehicles, office equipment, computer software for business and other types of business purpose equipment, so if you are considering upgrading your massage tables, adding a service like cryotherapy or streamlining your appointment system, this is a great advantage for your business in 2019.


Ethan Domino