Section 179 for 2022

How much do you know about the section 179 tax code? Do you know if you qualify for section 179? Tom’s is here to help answer those questions with an overview of what section 179 is.

Section 179‘s purpose is to help; it allows businesses to deduct the entire amount of the purchase price of their equipment with only a few limitations. This makes it a great incentive for businesses to lease, finance, or purchase equipment. By deducting your final cost you’ll significantly lower the total amount you pay for equipment or software.

Section 179 must be used by the end of the current year and it’s easy to use! All you have to do is finance, buy, or lease the equipment and fill out the special IRS form. 179 changes fairly quickly, in just the last few years the deduction limit has been raised, expired, and raised again. So, your best chance is to stay ahead of things, you can do this by using a tax calculator online to check your tax deduction: https://www.section179.org/section_179_calculator/

According to the IRS the section 179 deduction limit for businesses in 2022 is currently $1,080,000, which is an increase over last year. The total equipment purchase limit is $2.7 million, also up from last year.

If you have any questions about qualifying, please give us a call and we will be more than happy to help walk you through the process and provide the information you need!