What is the Section 179 Deduction and How Can It Help You Save Money?
Deduct up to $1 million in tax incentives on new and used trucks purchased or leased in 2020!
Section 179 deduction is not as confusing or complicated as it seems. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It is an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are taking action and getting real benefits.
Now through December 31, 2020, eligible business owners can write off up to $1,000,000 when you purchase, finance or lease new or used equipment. A $2,500,000 maximum can be spent on eligible equipment before the available tax deduction is reduced. Also, a 100% bonus depreciation is available for new equipment, after the spending cap has been reached. The bonus depreciation is retroactive to September 27, 2017 and good through 2022.
To compute your potential savings, go to the official Section 179 calculator.
We encourage you to contact your tax advisor concerning the 2020 Section 179 deduction and specific qualification details.