Section 179 Deduction Tax Code

What is the Section 179 Deduction?

The Section 179 deduction was a tax code created to encourage businesses to buy equipment and invest in themselves. Typically, when your business buys certain items of equipment, it gets to write them off a little at a time through “depreciation” – it spreads the total deduction out across the “useful” years of the equipment. A bit complicated, and certainly not as appealing as deducting the amount all together.

However, Section 179 allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during that specific tax year. All businesses that purchase, finance, and/or lease equipment valued at less than $2,000,000 in new or used business equipment during  the tax year of 2016 should qualify for the Section 179 deduction.

What items qualify?

Most any “tangible good” for primarily business use should qualify – though there are restrictions on certain things such as vehicles purchased for business use. Also, a necessary requirement for the tax 179 deduction code to apply, the equipment must be placed “into service” during the 2016 tax year – so ideally, any large equipment purchases that may require special delivery or installation should be placed ahead of time to allow for the equipment to be in service within the tax year window as well.

For a full list of qualifying equipment and restrictions, this list is a great resource for more information.

How much could Section 179 save me?

The Section 179 deduction can have a real impact on your small business, and greatly lower the “true” cost of your new equipment. On the Section179.org website, there is a very convenient and easy-to-use calculator that gives you a peek at what those savings could be. Click here to enter your own potential purchase amounts to see how much Section 179 could save you this year!

 

Epson F6200

Epson F7200

Epson F9200

Equipment Cost: $8,495

Equipment Cost: $15,995

Equipment Cost: $25,995

First Year Deduction: $8,495

First Year Deduction: $15,995

First Year Deduction: $25,995

Cash Savings: $2,973.25
(assuming a 35% tax bracket)

Cash Savings: $5,598.25
(assuming a 35% tax bracket)

Cash Savings: $9,098.25
(assuming a 35% tax bracket)

Lowered Cost of Equipment:

$5,521.75

(after Tax Savings)

Lowered Cost of Equipment:

$10,396.75

(after Tax Savings)

Lowered Cost of Equipment:

$16,896.75

(after Tax Savings)

The Direct to Garment Process: What Happens If I Don’t Pretreat?

Direct to Garment printing is a revolutionary digital printing method for customer T-shirts which offers the look and feel of screen printing but in a much more simplified process. A T-shirt is simply laid onto the flat bed of the printer and the image is directly printed onto the shirt in full color.

dtgprocess

To ensure that the printed image actually shows up on a colored or dark T-shirt however, there are a few extra steps we need to take. The most important step is to always pretreat the garment with “pretreatment” solution. Pretreatment is a milky or clear liquid that acts as a primer base and prevents the ink from soaking into the shirt and disappearing into the fibers. It also helps the water based inks stay put during printing and not mix with each other while still wet. Pretreatment is especially important for the white base that is printed underneath the colors to make them pop!

The pretreatment liquid is applied onto the shirt by either a hand sprayer or a spraying machine , then allowed to air dry or dried under a heat press and finally pressed at 338F for 40-45 seconds at medium pressure to set the pretreatment. The layer should be close to invisible and will completely wash out after the first wash.

pre-treat-infographic

What happens if we don’t pretreat the T-shirt?

Nothing good. The white ink soaks right into the T-shirt, leaving the rest of the colors with nothing to sit on top of. The result is a muddy mess due to the rest of the colors soaking further into the fibers and bleeding into each other.

aaa_9401

Lesson learned: Always pretreat a T-shirt that is a brighter or darker color (you may be able to pull off a light gray shirt or tinted off-white but that’s about it).

There are a few brands of pretreatment available, but generally the pretreatment liquid and the inks should be the same brand. Our top choice is the Epson SureColor F2000 Pretreatment Liquid which is compatible with the same brand printer and inks. It comes as a concentrate and needs to be diluted with distilled water.

For best results, we recommend using the pretreatment process on any colored shirt. Even light colored garments can show through the design and tint it slightly.

What Is a RIP And Why Do I Need It?

What is a RIP Software Program?

The abbreviation RIP stands for Raster Image Processing. The RIP Software converts your digital image created in a graphics software (CorelDraw, Illustration, Photoshop) to a ready-to-print file with the most ideal resolution for inkjet printing. The ripped image can now go from your PC to your wide format printer.

rip-software-infographic Desktop printers don’t need RIP programs, because they come with a print driver that has sufficient amount  of control and options for general smaller format printing. Recall when you click “print” and a box comes up and you can select if you want to print in color, black & white or grey scale – this is your print driver. Wide format printers are a bit more advanced and RIP programs are often needed for exact color output, quality resolution, rasterization and maximum control.

Why Do I Need A RIP?

A RIP program offers a professional wide-format print shop multiple benefits beyond the basic printer driver.

  • Save media and ink cost with advanced ink control and nesting features in many common RIP programs
  • Color profile management for a variety of media, ink technologies, and application purposes
  • Multi-printer management with ability to print up to four printers from a single computer
  • Faster image processing, which handles wide variety of file types, including high-resolution vector and raster images
  • Upgrade features available to add-on with such as variable data printing, automatic color separation & halftone screens, and much more!

fourprinters_rip

What Else Can The RIP Do?

A RIP program also handles the rasterization of images with an enhanced process that preserves the image details to an optimum level. Rasterization is the process of converting a vector file to a raster file (or in other words, a bitmap image). Vector files are graphics made up of paths, not pixels. They don’t have a resolution and can be enlarged indefinitely without losing information. However, when it comes to printing, a vector graphic needs to be converted to a file type that contains pixels (or small dots) so the printer can read it and print it. The RIP software converts that vector file to a raster file at the highest quality possible and preps it for printing.

vectorvsraster

 

Things To Remember

The program you create your graphics design in, the RIP software program and the printer are all separate entities. They will work together to bring you the end product you want. It is important to make sure that they are all compatible. RIP software programs can be purchased separately or in some cases they are paired with the purchase of your printer. If this is the case, be aware that you are getting the basic version of the RIP software program. Upgrades to be purchased will be recommended to you at a later date.