The Section 179 Tax Deduction allows a business to deduct all or part of the purchase price of certain qualifying equipment that is leased or financed.
How It Works:
- When you acquire equipment for your business, you can deduct up to $1,160,000.
- The deduction phrases out when a business purchases more than $2.8 million in one year.
- Once you hit the Section 179 deduction limit, you may also qualify for Bonus Depreciation. For 2023, Bonus Depreciation is 80%.
- The Section 179 Deduction and Bonus Depreciation apply for both new and used equipment.
With a $1,160,000 deduction limit, you'll be able to deduct the full cost of equipment and get thousands back! Use the Section 179 Tax Savings Calculator to find out how much money could be put back into your pocket.
To take advantage of Section 179 on your 2023 tax return, the equipment must be purchased and put into service by midnight 12/31/2023. Use Form 4562 to claim your deduction.