We’re in the 4th quarter.
Is your team ready to win or down for the loss?
Now is the time to look at the Section 179 tax deduction for equipment purchases!
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year.
Limits of Section 179:
Cap to total amount written off: ($1,000,000)
Limits to the total amount of the equipment purchased: ($2,500,000)
The deduction begins to phase out on a dollar-for-dollar basis after $2,500,000 is spent by a given business thus, the entire deduction goes away once $3,500,000 in purchases is reached.
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2019 should qualify for the Section 179 Deduction (assuming they spend less than $3,500,000). Most tangible goods used by American businesses, including “off-the-shelf” software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.
For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment provided below. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2019 and December 31, 2019.