Should I Take the Deductions?
What is a Section 179? It’s a tool from the IRS that allows businesses to accelerate deductions of the full cost of software or equipment that was purchased during that tax year. Businesses can lower their current-year tax liability instead of writing off a depreciating asset over time. This means that the equipment cost can become an immediate expense deduction creating an immediate break on the business’s taxes instead of getting smaller deductions over time caused by depreciation. This can allow small business owners to grow their business while purchasing new equipment. One thing to note is that there are limits when it comes to Section 179. There are caps to the total amount written off and the total amount for equipment purchased which can change each year.
We are not accountants, so please consult with your CPAs. For further information please see the articles below.
Learn more from the IRS:
Calculate your deductions: