As a business owner, you’ve probably heard about Section 179 and its tax deduction benefits. But what exactly is Section 179, and how can it impact your business?
What is Section 179
Section 179, a part of the U.S. tax code, offers businesses tax incentives for purchasing capital equipment.
In 2023, the Section 179 tax deduction limit increased significantly. Businesses can now deduct up to $1,160,000 for eligible capital equipment. While the spending cap for eligible capital equipment rose to $2,890,000 for equipment bought in the same tax year.
The Section 179 website is a good source to check out current tax law updates and provides a handy calculator tool
This tool aids financial planning, ensuring your facility remains up-to-date, safe, and efficient.
How to Benefit from Section 179
Section 179 is a game-changer for businesses. This deduction allows you to immediately write off certain purchases, reducing taxes for capital equipment.
Capital equipment is defined as “Equipment used to manufacture a product, provide a service, or use to sell, store, and deliver merchandise. This equipment has an extended life, so it is properly regarded as a fixed asset.”
We specialize in implementing capital equipment as lasting solutions that enhance your facility. Examples of capital equipment could be a mezzanine for increasing usable space or boosting operational efficiency and safety with a VRC lift. Section 179 allows the implementation of these types of material handling solutions without a hefty upfront tax burden.
Adding material handling solutions not only improves efficiency but also offers financial benefits through Section 179 utilization.
We Can Help
Understanding Section 179 and using it to your advantage can provide significant benefits to your business.
If you are interested in taking advantage of this deduction, contact us. We’re here to help you maximize Section 179’s benefits and fuel your business’s growth!