Most successful businesses take advantage of legal tax incentives to help lower their operating costs. Did you know that you can immediately deduct the full purchase price of qualifying equipment and/or software? Section 179 of the IRS tax code lets businesses do just that.
Much of the equipment businesses purchased to conform to COVID-19 restrictions will qualify for the Section 179 tax Deduction.
Further, eligibility for the Section 179 tax deduction for 2020 is unaffected by any pandemic-related financial assistance a business may have received (e.g., PPP Loans.) In other words, if a company received a PPP loan or any other Pandemic-related assistance, they may still claim their Section 179 Deduction.
2020 Section 179 Deduction Limit for Businesses is One Million Dollars
The Section 179 deduction for 2020 is one million dollars. This means U.S. companies can deduct the full price of qualified equipment purchases, up to $1,000,000, with a “total equipment purchase” limit of $2.5 million. The deduction includes both new and used qualified equipment. In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2020
Curious how much you can save with Section 179 on your own purchase?
View the 2020 Section 179 Tax Deduction Calculator via the link below to get an estimated lowered cost of equipment based on your tax bracket. This deduction is easy to receive and can greatly help your bottom line by lowering the amount you pay, all you need to do is buy (or finance/lease) the equipment, and use a special IRS form to submit. Keep in mind, since this is not a direct discount on the cost of your equipment, it can be paired with other promotional pricing.
Don’t miss this opportunity. Take advantage of this “use-it-or-lose-it” tax write off today.