Section-179 of the IRS tax code allows businesses to deduct the full cost of new or used equipment from their 2023 taxes!
Deduct the full purchase price of qualifying equipment or software leased or financed during the tax year.
This means if you finance or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income.
It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves, making a huge difference to your company’s bottom line.
The new 2023 Section 179 deduction limit is $1,160,000.
Good on new and used equipment & off-the-shelf software.
This is the maximum amount that can be spent on equipment before the Section-179 Deduction begins to reduce on a dollar-for-dollar basis.
This spending cap makes Section-179 a true small business tax incentive. This makes it a very effective tax deduction for small and medium businesses, who typically will not hit $4,050,000 in purchases in any given year.
Bonus Depreciation is generally taken after the Section-179 spending cap is reached and is available for new and used equipment.
The bonus depreciation is made retroactive to 9/27/2017!