Maximize Business Tax Deduction: 2021 Tips from Beacon Funding

By Asher Zallik| Feb 25, 2021| 8592 Views

Businesses often miss great tax-saving opportunities because they aren’t aware certain tax breaks exist. Don't let that happen to you!

With Section 179, you can get thousands back just for financing qualified equipment in 2021.

In this article, you will learn...

  1. How equipment financing can qualify your business for a large Section 179 income tax deduction
  2. How to calculate your potential Section 179 income tax savings with tools
  3. Section 179 deduction limits for 2021
  4. Where to get the equipment financing you need to qualify for the deduction

How Equipment Financing Can Help You Get Your Max Income Tax Deduction

This tax break rewards growing businesses for investing in themselves. Unlike normal depreciation, Section 179 allows your business to write-off 100% of the purchase price (up to $1,050,000) of the equipment you finance.

If your business finances or purchases equipment between January 1st to December 31st, and uses that equipment, you can legally avoid paying federal income taxes on your 2022 profits.

Under IRS Section 179, this simple yet true tax benefit allows 100% of equipment cost to be depreciated in the year acquired against that year’s business profits. And yes, even if the new or used equipment is financed, it qualifies for the Section 179 depreciation cash savings.

Section 179 tax is the U.S. government’s way of stimulating the economy. When businesses are encouraged to invest in themselves, and with more equipment working, jobs are created. Then, there is a corresponding increase in wages and payroll taxes from the businesses manufacturing, selling, and using the equipment.

Tools for Calculating Your Potential 2021 Section 179 Income Tax Savings

Calculate Your Section 179 Deduction with Beacon Funding’s Mobile App

Want to quickly see how much potential income tax savings your business could qualify for when you finance equipment?

Beacon Funding’s mobile app makes it easy to calculate how much your business could save when you claim a Section 179 tax deduction.

Download the mobile app today on AppStore or on Google Play.

Section 179 Deduction Limits for 2021

  1. Section 179 Depreciation for 2021 is limited to $1,050,000 (adjusted for inflation each year). If you purchased equipment over this amount, you may qualify for “Bonus Depreciation”.
  2. Bonus Depreciation details are complex, so please consult your tax advisor! 
  3. Equipment must be put into service by December 31, 2021, to qualify.
  4. Combining the use of equipment financing and Section 179 tax benefits is a powerful “cash in your pocket” tool.

Start Benefiting Your Business Today with a 2021 Section 179 Tax Write-Off

When you combine simple, easy, and competitive equipment financing with Section 179 tax benefits, it is easier to fit new or used equipment into your budget.

Start the process sooner than later, especially before the year-end rush, and don’t risk the equipment you want not being available.

For your business, you want to consult your professional tax advisor. The sooner you do, the more likely you can use the opportunity to keep cash in your business.  

Remember: Equipment must be in use before the end of the year to qualify. If the equipment you are looking at takes a few months to deliver, plan ahead to make sure it is available before the deadline.

Asher Zallik
Asher Zallik

P: 847.307.6238 |  E: Schedule a Meeting with Me

Graduating with a bachelor’s degree from the University of Illinois at Urbana-Champaign, Asher Zallik is the financing consultant you will wish you knew when you started your business.