When it comes to expanding your business, it is important to be informed about all the benefits you can receive for purchasing or leasing new equipment. Section 179 Tax Deduction is a benefit that small & even some large businesses can take advantage of, alongside financing their equipment with Equipment Finance Group.
Let’s start by breaking down Section 179, allowing you to clearly understand how the tax deduction benefits your business when adding new equipment.
The 2020 deduction limit for Section 179 is $1,040,000.00. In ordered to take advantage of this deduction, the equipment must be purchased or financed and installed during 2020 (January 1st, 2020-December 31st, 2020).
One of the main reasons the US Government created the Section 179 Deduction was because they want 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.
There is a $2,590,000.00 spending cap on equipment purchases for 2020.
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 buy or lease your equipment, you are still able to deduct the full purchase price for your new or used, but new to you, equipment, up to the limit of $1,040,000.00.
One of the requirements equipment must meet when qualifying for the 179 deduction is; the equipment must be used for business purposes, more than fifty percent of the time.
If you are 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 are aware of the benefits you can take advantage of when financing or purchasing equipment, EFG is here to help you get the equipment you want with ease. 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.