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 2022?
The Section 179 deduction limit for 2022 has been raised to $1,080,000. Your company is allowed to deduct the full cost of equipment (either new or used), up to $1,080,000, from 2022’s taxable business income. Further, you can purchase up to $2,700,000 in equipment – after you reach that limit, the deduction will decrease on a dollar to dollar basis.
Bonus Depreciation: 100% for 2022
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 2022?
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.
Section 179 Tax Deduction Calculator
| (100% in 2022)
| (after Tax Savings)
The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease-purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business. For more information and for up to date information and calculations, please visit www.section179.org