Section 179 Deduction

News Alert:

The Section 179 Deduction Limit for Businesses is $1,160,000

The Section 179 deduction is $1,160,000 (up from $1,080,000 in 2022). This means U.S. companies can deduct the full price of qualified equipment purchases, up to $1,160,000, with a “total equipment purchase” limit of $2.89 million (up from $2.7 million in 2022). The deduction includes both new and used qualified equipment. The deduction begins to phase out on a dollar-for-dollar basis after $2,890,000 is spent by a given business so this makes it a true small and medium-sized business deduction.

In addition, businesses can take advantage of 80% bonus depreciation on both new and used equipment for the entirety of the following fiscal year. Remember to keep supply chain issues and delivery times in mind when making your Section 179 purchases for the end of the year.

The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment – equipment that they use to improve their operations and further increase revenue.

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Section 179 Explained

What Is Section 179?

Section 179 is an attractive tax deduction for small and medium businesses. It’s also very easy to understand and utilize.

How Much Can I Save?

It depends on how much qualifying equipment and software you purchase and put into use this year.

What Qualifies?

Most tangible business equipment, both new and used, qualifies.

How Long Do I Have?

Section 179 always expires at midnight, December 31st. You must buy (or lease/finance) your equipment, and put it into use, by December 31st of this year.

Ready To Invest in Your Business?

Being a small business ourselves, we understand how important it is that you keep as much profit as possible. How can we help your business? All you need to do is contact us, and we can schedule a time to discuss what upgrades you’ll need for the upcoming year.