Tax deductions are looking up for businesses for the 2020 tax season. If you purchase equipment before the end of the year, you may be able to fully deduct the expense instead of depreciating over time thanks to Section 179. The maximum deduction for 2020 is $1,040,000.
As stated with Section 179.org, “Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.”
Not all items may be eligible for tax deductions so consult with your CPA. Take advantage of these tax benefits and use them before you lose them.
Questions? If you would like any additional information about the Section 179 benefits, please visit them online at www.section179.org. If you are interested in learning any more about Mode5, please contact us at 757-628-8324.