Hey everybody, Bernie Gartland from the Gartland Group. Today, we’re going to have a little fun. We’re going to revisit something that we talked about a lot in the past, except maybe you guys aren’t getting the message. I want to revisit something. It’s called a Section 179 Deduction.
Now, why I’m saying this is just recently a colleague of mine who I do business with was lamenting to me that they had to come out of pocket for some equipment. They said, “Oh my goodness, I’m going to have to take this money out of my pocket. Then it’s money spent and I don’t get any benefit except the equipment.” I said, “Au contraire. Remember Section 179 says if you are a business man and you take money out of your pocket to buy equipment …” Let’s say a printing press for fifty thousand dollars, or online equipment for ten thousand. You can expense that out. You don’t depreciate it. You get the full value of whatever you bought. A hundred thousand dollar piece of equipment, you can deduct that and it is not even included in his income. You don’t have to pay tax on it either. Income tax or self employment tax.
I said to my friend, “Not to worry. You’re going to get a business expense immediately that now you are having the equipment and you don’t have to pay tax on it.” That’s Section 179. If you need more information, go online with the GartlandGroup.com. We’ll see you next time.