Section 179 allows your business to write off the entire purchase price of qualifying equipment for the current tax year.
Here at Hendershot Equipment we are dedicated to making sure you get the most out of your purchase, so we want to inform you of all Section 179 has to offer.
This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2020, the equipment must be financed or purchased and put into service between January 1, 2020 and the end of the day on December 31, 2020.
$2,590,000 is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive”.
The equipment must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment by the percentage of business-use to arrive at the monetary amount eligible for Section 179.
Here is an updated example of Section 179 at work during the 2020 tax year: