Gear Up for 2021!
Equipment is waiting in our lots for you to get an incredible tax break on. Section 179 was created by the IRS for small businesses as an advantage to invest in themselves. Section 179 allows a business to write off 100% value of the equipment purchased. We have many new and used heavy equipment units to fulfill this great opportunity for your business. Instead of depreciating costs over five years or more, you can deduct the asset’s entire cost in the year it was ready and available for use. By doing this, you are reducing your taxable income and creating tax savings.
Section 179 Deduction Rules
- Eligible equipment must be new-to-you; even used equipment that is new to your business qualifies.
- Section 179 applies to tangible personal property and qualified real property. (Check with your tax professional to see if your purchases qualify.)
- The deduction limit for Section 179 is $1,040,000 for tax year 2020 and is reduced by the amount by which the cost exceeds $2,590,000.
- All assets must be placed in service by Dec. 31 of the tax year.