–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.
–If a business buys (or leases) a piece of qualifying equipment, they can deduct the FULL PURCHASE PRICE from their gross income.
–It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
–Allows businesses to write off the entire purchase price of qualifying equipment for the current tax year.
–What qualifies? – Most tangible goods used by American businesses, including “off-the-shelf” software and business-use vehicles qualify for the Section 179 Deduction.
–Equipment must be at business’s site by December 31, 2024 in order to take Section 179 benefit – in most cases all that is required is serial number for qualification.
Overview: Section 179 tax deduction for 2024.
–If you own a small business, the Section 179 deduction is one of the most essential tax codes you need to be familiar with. It lets you deduct all or part of the cost of equipment purchased or financed and put into place before December 31, 2024.
–Section 179 tax deduction limit – The current deduction limit is $1,220,000 on qualifying equipment, and the limit on equipment purchases has increased to $3.05 million. This was enacted through the Tax Cuts and Jobs Act.
–More info can be found at this link: https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
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