The end of the year is a busy time for businesses. They're scrambling to get new equipment and make sure their books are in order before the new year. This can be a stressful time for business owners, but it's also an important time to take advantage of tax breaks and other benefits that come with making purchases before the end of the year. If you're planning to buy equipment or take delivery of equipment before the end of the year, now is your time to take advantage of The Section 179 tax deduction. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software that is acquired and put into service during the tax year. This deduction is available for both new and used equipment, and it can be a valuable way to save on your taxes while investing in your business. Expenses that can be deducted under Section 179 include:
- office furniture and equipment
- computers and software
- machinery and tools
- vehicles (including cars, trucks, and vans)
To qualify for the Section 179 deduction, equipment must be used for business purposes 50% or more of the time. Additionally, the total amount of equipment purchased during the tax year must be less than $2 million. If you exceed these limits, you may still be able to deduct a portion of the purchase price.
If you're thinking of taking advantage of the Section 179 deduction, be sure to consult with your accountant or tax advisor to ensure that you meet all the qualifications. And don't wait until the last minute–purchases must be made and put into service by December 31st in order to qualify for the deduction in that tax year. So if you're considering new equipment for your business, now is the time to make your purchase. Section 179 can offer significant tax savings and help you invest in your business–so don't wait to take advantage of it.
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