Section 179 is a tax incentive that allows small businesses to write off the entire purchase price of qualifying equipment in the year it was purchased. The benefits of Section 179 are dramatic for small businesses that buy or leasing equipment.
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 buy or lease a piece of qualifying equipment, deduct the FULL PURCHASE PRICE from your gross income. This deduction is good on new and used equipment. To take the deduction for tax year 2022, the equipment must be financed or purchased and put into service between January 1, 2022 and the end of the day on December 31, 2022.
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2022 should qualify for the Section 179 Deduction (assuming they spend less than $2,700,000). The limit is $1,080,000 for 2022.
*Under the Tax Cuts and Jobs Act many equipment purchases qualify for tax advantages. Contact your tax adviser to discuss your options as they relate to Section 179 expenses and bonus depreciation. Restriction may apply. ASCO does not provide tax advice and this should not be considered tax or legal advice.