What is the Section 179 Deduction?
All businesses that finance new or used business equipment during the tax year should qualify for the Section 179 Deduction.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software financed during the tax year. That means that if you finance qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Section 179 is more beneficial to small businesses than ever. Today, Section 179 is one of the few government incentives available to small businesses and has been included in many of the recent Stimulus Acts and Congressional Tax Bills. Millions of small businesses are actually taking action and getting real benefits.
Here’s How Section 179 works:
Section 179 allows your business to write off the entire purchase price of equipment for the current tax year.
This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on your tax return (up to $1,000,000).
The equipment and/or software financed must be placed into service between January 1 and December 31.