On the fence about that forklift purchase? This may be the best time to buy! Get the equipment you need to run your business and you may be able to claim the full purchase price as a deductible business expense for 2022!
Section 179 offers small businesses a great opportunity to maximize purchasing power. In addition, recent changes have provided the small business owner with generous new (and higher) deduction limits.
Most of the equipment your business will purchase, finance or lease qualifies for the deduction (see Section 179 Qualified Financing), so make sure you do your homework to verify that your company is leveraging the Section 179 Deduction this year.
“Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.”
– Read more details at Section179.0rg
“All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2022 should qualify for the Section 179 Deduction (assuming they spend less than $3,780,000).”
– Read more details at Section179.0rg
“Section 179 does come with limits – there are caps to the total amount written off ($1,080,000 for 2022), and limits to the total amount of the equipment purchased ($2,700,000 in 2022). The deduction begins to phase out on a dollar-for-dollar basis after $2,700,000 is spent by a given business (thus, the entire deduction goes away once $3,780,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.”
– Read more details at Section179.0rg
For more information, ask your tax advisor if Section 179 applies to your business, and then contact Insley McEntee to schedule a demo and to see inventory.
Using a $75,000 equipment cost for a sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased.
In our example, $75,000 in equipment purchased has a true cost of $48,750. That’s $26,250 saved. Would you like an extra “25 grand-plus” this year on equipment you needed anyway?! Use the calculator to estimate YOUR savings.
