The 2020 Section 179 Deduction Limit for Businesses is $1,040,000
Don’t forget! The deduction limit for 2020 has been raised to $1,040,000. This means U.S. companies can deduct the full price of qualified equipment purchases up to $1,040,000 with “total equipment purchase” limit of $2,590,000. The deduction includes both new and used qualified equipment.
In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2020. This can really make a difference to your bottom line at the end of the year.
Normally, capital expenditures are depreciable assets. Section 179 allows your business to elect to treat the cost of qualifying purchases as an expense, rather than asset. Your business’ tax situation is unique, so please consult your tax accountants or attorneys to determine how much tax savings, if any, Section 179 can provide.
Why use Section 179?
Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment – equipment that they use to improve their operations and further increase revenue.
In short, taking advantage of the Section 179 Deduction will help your business add equipment, and vehicles while allowing you to keep more of your tax dollars.
See the fully updated 2020 Section 179 calculator here!
