About SECTION 179 AND BONUS DEPRECIATION†
Section 179 of the IRS tax code allows businesses to deduct the FULL price of qualifying equipment and/or software when it is put into service during that tax year. That is a deduction from your GROSS business income. When you get a great deal on pricing, this tax break can make your purchase a win-win!
- In January 2018, Congress passed H.R. 1., also known as the Tax Cuts and Jobs Act, that increased the Section 179 deduction limit to $1,000,000 for 2018 and beyond. The total amount of equipment that can be purchased is $2,500,000. This includes new and used capital equipment as well as off-the-shelf software.
- Bonus Depreciation was increased to 100% on qualified assets and can be taken on new AND used equipment. This extend through 2022.
Where to find more information
Discuss your options with your tax professional who knows and understands your special circumstances. There are also some great online resources to help you better weigh your options.
- Section179.org is a helpful website in understanding this section of the IRS tax code.
- Section 179.org also has a tax calculator that helps you compare several purchase options and the Section 179 impact.
- We are providing this information as a helpful reference and are not responsible for this site’s information.
†Shor-Line is not a certified tax professional. It is recommended that you consult with your tax professional.
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