Purchase Before December 31st
Is your business in need of new equipment? Are you holding off on acquiring equipment because of capital constraints or other concerns, like conserving your cash?
The U.S. Section 179 of the IRS Tax Code offers eligible businesses a great opportunity to maximize purchasing power. Section 179 allows you to deduct the full purchase price of qualifying equipment in the year it was put into service.
In addition, businesses can take advantage of 80% bonus depreciation on both new and used equipment over the purchase limit of $2.89 million for the entirety of 2023. Act now and save! Bonus depreciation will decrease to 60% in 2024 and phase out to 0% by 2027.
2022 Section 179
Tax Deduction CalculatorTM
The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.
Example Calculation Using the Section 179 Calculator
Using a $75,000 equipment cost for a sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased. In our example, $75,000 in equipment purchased has a true cost of $48,750. That’s $26,250 saved.
Would you like an extra “25 grand-plus” this year on equipment you needed anyway? In order to qualify for the Section 179 Deduction, the equipment must be purchased, financed or leased equipment and put into service by December 31 of this year!