What is the Section 179 Deduction?
Section 179 of the IRS Tax Code allows a business to deduct the full purchase price of equipment and off-the-shelf software that qualifies for the deduction for the current tax year.
What are the Section 179 Limits for 2021?
The Section 179 limit for 2021 allows for up to $1,050,000 in eligible equipment to be deducted, and the ‘total equipment purchased’ by a business cannot exceed $2,620,000. Once the equipment purchased exceeds that number, the deduction reduces on a dollar for dollar basis.
Bonus Depreciation: 100% for 2021
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
How much money can Section 179 save you in 2021?
The Section 179 Deduction has a real impact on your equipment costs. Use the calculator available on the official Section 179 website to see how much your tax liability can be reduced.