WHAT IS THE SECTION 179 DEDUCTION?
You can possibly deduct up to $1 million in tax incentives on trucks purchased or leased this year!
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software 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 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.
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. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are actually taking action and getting real benefits.
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2020 should qualify for the Section 179 Deduction (assuming they spend less than $3,630,000).
For basic guidelines on what property is covered under the Section 179 tax code, please refer to to your tax advisor. Also, to qualify for the Section 179 Deduction, the equipment purchased or financed must be placed into service between January 1, 2020 and December 31, 2020.
For 2020, $1,040,000 of assets can be expensed.
To compute your potential savings, go to the official Section 179 calculator