What is Section 179?
Section 179 encourages business owners to invest in equipment or technology by allowing them to deduct a substantial amount of the asset’s value the first year.
Does Section 179 apply to my business?
A sole proprietor, partnership, or corporation can fully expense qualified tangible property the year it is put in use if the qualifying assets are used for business purposes more than 50 percent of the time. Your equipment must be delivered and in use by December 31, 2022.
How much can I deduct for the 2022 tax year?
Your business can deduct a value of up to $1,080,000 of qualified equipment acquired and put in use during 2022. A bonus depreciation of 100% may apply for the $2,700,000 spending cap. 2022 is the last year for the 100% bonus.
Why should I utilize Section 179?
Section 179 may lower your tax payment to the government and free up cash for other business needs.
