Section 179 Deduction for 2019: Act Now for Tax Savings
What is section 179? Here’s how this business tax deduction works.
As a decision-maker in a medium to small business environment, you may be wondering: what is section 179, and how can section 179 affect my business tax deductions? Let’s take a closer look.
What is section 179?
This section of the IRS tax code may allow businesses to take advantage of deductions for the full price of qualifying equipment or software they’ve bought or financed during the tax year. That means, to take advantage of these tax deductions for the 2019 tax year, you must make a qualifying new investment purchase by December 31 of this year.
If you have leased or purchased a piece of qualifying equipment this year, you may already be able to benefit from this deduction, and if you are considering any qualifying purchases, now may be the time to invest in your business.
Business tax deductions: how section 179 may benefit you
Buying technology and equipment for your business can be and expensive, yet necessary investment in the sustainability of your enterprise. Technology can give your company a leg up on the competition, and help you remain relevant in a fast-changing marketplace, while also protecting what matters. With section 179/168(k), you may be able to save thousands of dollars simply by deducting the full purchase price of qualifying equipment or software.
Here are a few things you should know about the section 179 business tax deductions.
- The deduction limit for 2019 is one million dollars. The bonus depreciation for 2019 is 100%.
- If you buy or lease qualifying equipment, you may be able to deduct the full purchase price from your gross income.
- Section 179 is especially beneficial for small businesses, providing much-needed tax relief.
- In the past, businesses typically wrote off a little of the qualifying purchase at a time through depreciation. Section 179 enables businesses to write off the entire purchase price during the tax year that they bought it, rather than waiting for tax relief over the coming years.
Ready to put Section 179 to work for you?
Contact the experts at EO Johnson Business Technologies to take advantage of Section 179 for the benefit your organization’s business technology needs. Call us today at 844-365-4968 to discuss the investments you want to make into your business before the year comes to a close.