Simplifying Section 179
Fast Facts about the Section 179 tax deduction
This page gives you a quick “big picture” overview of Section 179. The individual pages for each aspect go a little deeper into the details (and we include links to them for ease of use), but this page serves nicely as a quick primer.
By allowing businesses to deduct the full amount of the purchase price of equipment (up to certain limits), Section 179 is a fantastic incentive for businesses to purchase, finance or lease equipment this year.
There is little sense in allowing a deduction on only obscure equipment, so Section 179 is aimed at general business equipment as well as off-the-shelf software. If you use it in your business, it probably qualifies. See a list of qualifying Section 179 equipment.
By deducting the full cost, you lower the amount you pay for equipment and/or software substantially. And these benefits can be further expanded if you choose to lease or finance your equipment & software.
All you need to do is buy (or lease) the equipment, and use a special IRS form. That’s it. Details here.
The various Stimulus Acts over the past few years have included special provisions for Section 179 and Bonus Depreciation, and greatly increased the limits on how much businesses could deduct. But the enhancements usually expire at the end of the year.
to take advantage of Section 179 and Bonus Depreciation. Why? Because it is a Use-It-or-Lose-It write-off that ends December 31st.
The ‘Section 179 Deduction’ Helps Your Business!