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Create Your Own Tax Break

Posted on: December 6, 2016

Do you still have budgeted money to spend by this year’s end? What if we could help you find some? By taking advantage of IRS Section 179 Tax benefit for 2016, you can increase the value of your office without spending a thing. Section 179 can change each year without notice (sometimes even mid-year), so don’t miss out on this generous tax code while you have the chance.

With over 40 years of workspace and office furniture knowledge, Bellia has the experience to help you make the most of your budget while creating a space that will continue to improve your bottom line. Instead of losing them, let us help you use those available funds.

In case you’re not familiar with it, we’ve broken down the benefit for you-

Let’s say you are profitable this year.

You have a net income of $100,000 that you are posting on your 2016 corporate tax return. If you are a C Corp then your blended tax rate will be 22.25%, and you’ll owe the federal government $22,250 for corporate taxes for 2016. Not to mention applicable state taxes. However, if you purchase $100,000 in assets, you get to 100% depreciate that $100,000 purchase on your 2016 corporate tax return. Now you have an additional depreciation expense of $100,000 on your 1120. 

$100,000 in net income – $100,000 in depreciation expense = $0 in net taxable income. 

$0 in net taxable income = $0 in tax dollars due = $22,250 in savings for your company and its owners.

But you need to act now, because in order for you to receive this tax benefit, all furniture must be in place by 12/31/16. Taking advantage of this opportunity will both save you money in corporate taxes and give you a workspace that will pay you back. Contact us today to get started.

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