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This tax season, if you’re not taking advantage of the benefits Section 179 provides, your business could be leaving money on the table. Section 179 allows small businesses that purchase, finance, and/or lease eligible items to deduct 100% of the cost, up to $1,080,000, during the first year that it was put into service for the business. And it’s not just new items that qualify; the deduction includes both new and used qualified software.
Taking the cost of these items as an immediate expense deduction allows your business to get a quick break on its tax burden, whereas capitalizing and then depreciating the asset allows for smaller deductions to be taken over a longer period.
Have you been thinking about upgrading your equipment or software? Now is the time to save while upgrading your digital business technology. In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the rest of 2022.
Over the years, this write-off has made a big difference for many businesses that need new equipment or software now but put it off due to the lack of available money. With the year coming to a close, it’s essential that you capitalize on this money-saving tax credit while upgrading your business with the resources you need to continue to grow and stay competitive.
Remember that to qualify for the Section 179 Deduction, purchases must be bought and put into use between January 1 and December 31 of the tax year you are claiming.
Check out this fully updated 2022 Section 179 Calculator, or speak to your financial advisor to see how the Section 179 tax deduction can benefit your company in 2022. Learn more info on Section 179 here.
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