What is Section 179?
Essentially, Section 179 Deduction is a tax code for businesses that allows them to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means if you buy, finance or lease a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.
How Much Can You Write Off on Your Taxes?
It depends on the amount of qualifying equipment and software being purchased.
Section 179 can change each year without notice (Section 179 has even changed mid-year), so it benefits you to take advantage of this generous tax code while it’s available. Most of the equipment your business will purchase, finance or lease qualifies for the deduction, so make sure you do your homework to verify that your company is leveraging the Section 179 Deduction this year. This deduction is good for new and used equipment, as well as off-the shelf software.
Section 179 expires December 31st at midnight. Therefore, equipment must be purchased and put into service by then.
What Types of Equipment Qualifies for the Deduction?
Section 179 was designed with businesses in mind. That’s why almost all types of “business equipment” that your company buys or finances qualify for the deduction.
For further details about deduction limits, or inquires about what qualifies, visit www.section179.org, or contact your tax preparer. We will work closely with your accountant to make sure that you take full advantage of this extremely profitable tax incentive.
Schedule a consult today to see how we can help your business take advantage of technology and Section 179!
- A Day of Remembrance and A Lesson In Continuity - September 11, 2020
- Data Recovery from a Broken RAID Array?Yes, We Do That! - September 10, 2020
- Why Experience Matters - July 7, 2020