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)

7 Tips for Sublimation Success


If you are just starting out in sublimation or already have a running business, there are a few things to keep in mind to make sure your business is running smoothly and avoid potential problems.

1 . Get the right equipment

Sublimation is an attractive opportunity because it can be easy and fairly cheap to set up. The only equipment that is needed includes a printer, sublimation ink, sublimation paper and a good heat press.

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Note: In this blog, we talk about sublimation ink in general but it is important to note that the only ink we offer and support for small format printers is made by Sawgrass, which is the official manufacturer who holds multiple patents for sublimation printing. Ink for wide format printers comes in a wider variety but is not specifically mentioned. 

Currently, the two major competing brands for small format printers are Epson and Sawgrass. Both produce great image results but are different when it comes to the ink they use. The main difference is that Epson inks have higher water content so they are prone to clogging when not in use for a  period of time. However, the ink can come in larger bags (bulk ink system) therefore resulting in a much lower ink cost per page. Epson is a great route for those who will be printing a lot on a daily basis, but not ideal for businesses that don’t print daily.

The Sawgrass Virtuoso system on the other hand is an all around perfect package for those who are brand new to sublimation. This is an easier system to set up, very active customer support all through Sawgrass on both printer and inks, and is good for both small and large volume jobs. The cartridges are larger than most standard cartridges that come with Epson, but there is no bulk system available for those who print hundreds of prints a day. The ink has lower water content and is formulated like a gel to prevent drying and clogging. The printers have automatic self-maintenance as long as they are left on which keeps the nozzles clean at all times.

Click HERE to see more of our Sawgrass packages.

Finally, a good heat press is a must. Consistent pressure and temperature are factors that can make or break your sublimation process. We recommend swing away presses which can accommodate thicker objects  and overall provide more even pressure over time. Clam shell presses are more budget friendly and good choice for thinner objects and garments but not as good for thicker glass or ceramic items.

2 . Stock Up On Accessories

sublimation_accessories

To get the workflow going, we recommend the following accessories:

Heat gloves– protect your hands from burning when handling items

Thermal tape + tape dispenser– use this heat resistant tape to secure your paper on items and prevent shifting or moving which can ruin the transfer. A tape dispenser cuts down on the production process by always keeping your tape ready for use.

Spray adhesive– another method to keep paper in place. Recommended for garments and fabrics.

Teflon sheets or Teflon covers– protect your lower heat platen with this water proof Teflon that can be easily wiped off and cleaned. A Teflon sheet can also be placed on top of a transfer as extra protection.

Silicone sheets– The thinner and more temporary  alternative of Teflon, these can also be used on the bottom platen as well as placed on top of the transfer, to catch any escaping ink from staining the heat press or prevent dirt from accidentally transferring on the substrate.

Heat transfer pillows– The life savers when it comes to pressing certain hard surface items, garment with seams or zippers,  or raising an area of a t-shirt to prevent the dreaded indentations the paper edge can leave due to the pressure. We always keep a few of these close by.

Sublimation heating pad– A good accessory to have if you are pressing multiple ceramic or metal items. Works like magic by distributing the heat evenly throughout the whole surface area.

 3 . Stock Up On Blanks

Sublimation can be tricky at times. New problems arise, mistakes happen, and items go out of stock last minute. If there is a large order due in a month, always plan ahead and factor in possible time for testing and trial and error, extra blanks that may end up being a waste, ordering as early as possible, etc.  Holidays are especially risky because items can be in stock one day and back ordered for weeks following that.

Click HERE to view all of our available blanks.

4. Know Your Design Software

learn-how-to-draw

 

 

 

 

 

 

Chances are that at least a basic design software is needed to be able to do things like crop and re-size an image to fit a specific item. Further, all of our products come with free downloadable templates, found on each product page in PDF (Photoshop) and EPS (Illustrator or Corel Draw) format. To use these templates successfully, some knowledge on how to use a design software such as Photoshop is a must. To stand out further as a business, creating your own designs from scratch would be ultimately the winning goal. There are a ton of written tutorials and videos online on Adobe Suite programs as well as Corel Draw. Adobe Photoshop and Illustrator are both available as a 1 month free trial download on the Adobe website.

One of our favorite websites Tutsplus offers a ton of tutorials on Adobe Illustrator and Photoshop as well as wider topics on graphic design, photography and even business. Another popular site among schools is Lynda which requires a sign up but also offers a free trial.  A simple Youtube “How-to” search is an alternative way to find many instructional videos on various design programs.

Check out the following videos from our Channel on how to use our templates with the corresponding design program:

Adobe Photoshop

Adobe Photoshop Elements

Adobe Illustrator

Corel Draw

5. Watch How Other People Do ItLDS_Art_Home

 

It is no secret that people have the tendency to come up with their own way to sublimate an item, but it is also a good idea to keep up with current videos and blogs on what is new in sublimation or how to press an item. You may catch something in that process that is easier or results in a better transfer than what you might be used to doing. Or if you are brand new, then a little bit of research goes a long way.

Visit our Youtube channel to see a full list of our sublimation videos on various topics.

6. Heat, Pressure and Moisture

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If you are running into problems with the final transfer being faded, burned, too light or spotty, check the three most important things: heat, pressure or moisture.

Too much or too little heat are usually problematic and result in over pressing or under pressing of the substrate. Uneven heating on the press is also an issue and results in spottiness where parts of the substrate sublimate properly but other parts don’t. It is a good idea to invest in temperature strips or a thermal gun, both of which map out the temperature of the heat platen. If there are any inconsistencies or cold spots, it is best to call the manufacturer of the press.

Pressure is equally important and sometimes, uneven transfers can be resolved by simply increasing the pressure. It is possible for the press to be providing uneven pressure however and generally, the manufacturer would do a phone walk through on how to calibrate the press and provide additional assistance to resolve that problem.

If everything checks out, moisture may play a role in spotty transfers. Moisture can warp flat items and can act as a barrier between the surface and the sublimation ink trying to penetrate it. This step is not always listed on the instructions, but it is good practice to pre-press items for 5-10 seconds at high heat and light-medium pressure to let moisture escape and flatten out the substrate. For warped items, such as MDF boards, pre-pressing both sides may be necessary.

Check out our more detailed blog on moisture HERE 

7. Test, Test, Test

No matter how long you have been in the sublimation business, variables change all the time and sometimes overnight. A heat press may suddenly not heat up to the temperature it shows or apply even pressure even though it has worked for 2 years without an issue. An item may be slightly changed in manufacturing requiring a heat/time adjustment which usually happens without warning, or it could be a brand new item you have never used before.

Luckily, you don’t need a ton of extra items to do testing. All blanks can be pressed multiple times for testing purposes. Anything that is previously sublimated will fade out, but the coating itself can take on multiple presses and would not be affected.  The easiest way to test is with small black strips (maybe throw in a few primary colors). Black looks brown when over pressed and grey when under pressed, so that is a pretty good way to figure out what combination of temperature, time and pressure produce the deepest black with sharpest edges. It is generally bad practice to test a full image on a final item and just hope it works right off the bat. That often leads to a wasted item with no extra white space that can be re-used for testing.

IMG_20150717_105559Once the perfect black is achieved with the right combination of settings, we recommend printing out an RGB color chart and pressing that onto the item(s) that will be big sellers.

That way, you will know exactly what the colors will look like on the final product. Remember that light can produce more color combinations (what you see on screen) than what a physical pigment can create (what you see on the final product).

 

 

 

 

 

10 Best Mates for Your Next Wedding Event

Looking for the best gifts to bring along as your +2 for your next summer wedding? We have the perfect tips on wedding market ideas and inspiration, plus some exclusive resources from our manufacturing partner, Unisub.com, to get you started!

Heart Coaster with Cork Backing

Heart Coaster with Cork Backing

Cost of coaster: $1.31-$1.71

Resale value: $5.00-10.00+

Prepare a monogram set for the new family, complete with engagement portraits, on these perfectly themed heart-shaped coasters. The coasters are MDF hardboard with an absorbent cork backing, and a glossy top sublimation coated surface for high-resolution printing.

 

 

 

Sublimation Foldable Can Coozie with Seams – 12 oz

Sublimation Fabric Coozie - 12 oz
Sublimation Fabric Coozie – 12 oz

Cost of coozie (each): $0.99-$1.23

Resale value: $7.00-13.00+

Themed coozies make the perfect bridal party and reception favors for the laid-back, casual wedding couple! Easy to customize in large quantities, and undeniably fun and functional, coozies make the perfect “why not?” touch to every event!

 

 

 

 

 

Two-Sided Aluminum Keychain – 2.25″ Square

4107_Alum_Square_Wed_LR
Two-Sided Aluminum Keychain – Square Aluminum – 2.25″ x 2.25″

Cost of keychain (each): $1.29-$1.99

Resale value: $6.00-10.00+

Unlock the potential of simple personalized keychains and capitalize on the monogram market with the double-sided aluminum keychain! A durable, inexpensive, and easy product to work with, the keychain is the perfect upsell accessory for a personalization boutique.

 

 

 

 

 

 

Two-Sided Sublimation Bag Tag for Luggage

Two-Sided Sublimation Bag Tag for Luggage
Two-Sided Sublimation Bag Tag for Luggage

Cost of luggage tag (each): $1.38

Resale value: $7.00-13.00+

For destination weddings, bridal parties, and honeymoons, the bag tag is the quintessential opportunity for an eyecatching extra touch! Easily functional items like bag tags and keychains are not only an opportunity for a simple upsell or package set offering, but they are just as head turning for your customer, which keeps the word of mouth moving!

 

 

 

 

 

Soft Luggage Handle Wraps with Velcro

Soft Luggage Handle Wraps with Velcro
Soft Luggage Handle Wraps with Velcro

Cost of luggage handle wrap (each pair): $2.33

Resale value: $10.00-15.00+

Offer a fully matching luggage accessory set for larger orders with the soft luggage handle wraps! These super-soft handle wraps are the finishing touch to travel in style, and cushion the strain of jet lag and heavy baggage!

 

 

 

 

 

Large Natural Serving Tray Kit

Natural Serving Tray Kit
Natural Serving Tray Kit

Cost of natural serving tray kit (each): $27.26

Resale value: $40.00-$60.00

Make sure this luxurious natural serving tray kit makes its way to the gift table! The handy tray bottom insert is easily imprinted, and then the entire tray assembles quickly for an impressive product that at first glance, doesn’t even seem printable! Available in two sizes, as well as a natural wood or espresso grain finish, the serving tray kit is perfectly paired with customized coasters and mugs, too!

 

 

 

 

 

Creative Border Ornament – Two-Sided (Benelux Design)

Keepsake Two-Sided Ornament - Benelux Design
Keepsake Two-Sided Ornament – Benelux Design

Cost of ornament (each): $2.52-3.10

Resale value: $7.50-12.00+

Creative Border ornament pieces aren’t just for Christmas – they also make extra-classy labels, place markers, give-away keepsakes, and alternative photo display opportunities! Creative Border ornaments have a polished semi-gloss printable sublimation surface that is two-side customizable, and are made of a strong and light finished aluminum.

 

 

 

 

Plastic Door Hanger – 4″ x 9″

Sublimation Plastic Printable Door Hanger
Sublimation Plastic Printable Door Hanger

Cost of door hanger (each): $3.47-4.50

Resale value: $7.50-12.00+

Whip up a gag bridal gift, or a fun touch to a group in a destination wedding with a custom printed door hanger! The plastic door hangers are double-sided printable and composed of a durable, glossy plastic substrate.

Bonus idea: For the ultimate fashionista who’s also incredibly organized, trendy printed door hangers also make great clothes rack label/separators!

 

 

 

 

 

 

 

Plastic Heart Sublimation Magnet

Plastic Heart Sublimation Magnet

Cost of magnet (each): $1.04-2.59

Resale value: $5.00-7.50+

Create a lasting impression with customized printed save-the-dates on easy promotional items like magnets! These glossy sublimation plastic substrates come complete with self-adhesive magnet backings, and can be full-color printed with photos, wedding information, and more easily with sublimation!

 

 

 

 

 

 

Sublimation Hardboard Jigsaw Puzzle – Heart – 23 pieces

Hardboard Sublimation Heart Jigsaw PuzzleCost of puzzle (each): $7.52-9.48

Resale value: $15.00-25.00+

This upscale twist on the classic jigsaw puzzle offers some unique personalization opportunities! The hardboard surface has a glossy white sublimation printable coating, and also features fun nested ‘heart’ pieces within the 23 piece set. They make a fun party favor for the kid’s table at the reception!