We only have a few months left in 2022, which makes now the time for you to finance the equipment you need and take advantage of Section 179 Tax Deduction.
When adding new equipment to your business, you must take advantage of all the benefits you can receive. Alongside financing your equipment with EFG, LLC, Section 179 Tax Deduction is a benefit for small & even some large businesses can take advantage of.
Let’s start by breaking down Section 179, allowing you to clearly understand how the tax deduction benefits your business in 2022.
The 2022 spending cap for Section 179 is $2,700,000.00. To take advantage of this deduction the equipment must be financed and put into service during 2022 (January 1st, 2022- end of day on December 31st, 2022).
One of the main reasons the US Government created the Section 179 Deduction was to encourage small and even large businesses to invest in themselves. This deduction is an incentive for companies to update their equipment and expand their business.
As mentioned, there is a $2,700,000.00 spending cap on equipment purchases for 2022. Meaning that this is the maximum amount that a company can spend on equipment before the Section 179 deduction available to the company starts to decrease on a dollar-to-dollar basis.
Whether you lease or buy your equipment, you are still able to deduct the full purchase price for your new or used, but new to you, equipment. Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
One requirement the equipment must meet when qualifying for the 179 deductions is the equipment must be used for business purposes more than fifty percent (50%) of the time.
Are you interested in Section 179 Tax Deduction? or want to learn more? Section179.org’s website is full of information and even offers a calculator to allow you to calculate your possible tax savings.
Now that you know the benefits you can take advantage of when financing equipment before the end of the year, EFG is here to help!
Reach out to us today, and our team will get started creating your equipment proposal and work swiftly to get the equipment into your facility.