Open post
Drone taxes and section 179

Drone Taxes: Finance your drone and pay no taxes this year!

Now I’m no expert in drone taxes, but how would you like to purchase that expensive Drone and LiDAR combo you’ve had your eye on, with no outlay of cash this year and have to pay zero taxes for the year?

It’s totally possible thanks to drone financing and Tax Section 179.  So what is Tax Section 179 and how can it do all the magical things I mentioned above?

Tax Section 179 is accelerated depreciation, it lets you write off the full purchase price of your business equipment in the year you buy it even if you finance it.  That means you could purchase a drone for your business in Q4, defer the payments to the following year, and get the full purchase price write off.

Let’s look at an example shall we?

You’ve been having a great year, business is really taking off (no pun intended).  You’re going to close out the year with $150,000 in profit, which is great, but you’re going to have to pay taxes on that $150,000.  Depending on the state you live in and overall tax rate you could easily be cutting a check to Uncle Sam for over $30,000! 

What if, instead of paying those taxes, you decided to upgrade your business.  You know those expensive LiDAR units can generate a ton of revenue, so you decide it’s time to buy one.  Now you could just spend all that $150,000 and write the whole thing off, or you could finance the purchase, save that $150,000 for a rainy day and still write the whole thing off owing $0 in taxes!

Now let me back up for a second.  As I said earlier, I’m not a CPA and I’m no expert in drone taxes.  With that said, talk to your accountant, I’ve been helping business owners finance all types of purchases for years.  Section 179 works for furniture, HVAC, forklifts, you name it, there’s really no reason it shouldn’t work on your drone.

Here are some of the main takeaways that you can find on investopedia.com about section 179.

Drone Taxes and section 179

Whenever I talk about tax stuff I always suggest speaking with a professional, but this is the real deal.  If you'd like more information on drone taxes there is another great drone blog that touches on this topic and can be seen HERE.

 

 

Scroll to top