With the end of the year only about a month and a half away, time is running out to secure your Section 179 equipment deduction.
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 price along with the normal years’ depreciation, from your gross income. This tax incentive was created by the U.S. government in an effort to encourage businesses to buy equipment and invest in themselves.
Check out the full details of Section 179 here.
So what does this mean for businesses? It means that with the tax incentives of Section 179 coupled with historically low interest rates, now makes it the opportune time to finance or lease equipment. Business owners can deduct the full purchase price of the equipment from their gross income while making affordable monthly payments, subject to certain limitations. With the Fed possibly set to increase interest rates this December as well, it is important to take advantage of this situation while it lasts.
Is your business planning on taking advantage of the Section 179 deduction this year? Comment below!