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We would like to remind our customers that Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179) has been raised to $1,050,000 (one million fifty thousand dollars) for 2021. This means that small businesses that purchase up to $2.62 million in qualifying equipment can deduct up to $1,050,000 from their taxes. Please note that all equipment — including software — must be purchased (or financed), delivered and in service before midnight on 12/31/2021. A $2,500,000 Spending Cap has been established so that Section 179, which was created with the intent of specifically helping small businesses, literally only applies to them. This amount is the maximum that can be spent on equipment before the deduction begins to be reduced on a dollar for dollar basis. Businesses that spend more than $3,500,000 on equipment don’t qualify for the deduction. In addition, a Bonus Depreciation of 100% is extended through 2021, and is available for both new and used equipment. This is generally taken after the Section 179 Spending Cap is reached. In addition, companies may be eligible to deduct federal depreciation on the adjusted basis of their qualified equipment, state depreciation, local tax incentives, and interest expenses. To learn more, visit Section179, or give us a call and find out how you can deduct your next metalworking machine! 385-271-6718 | Sales@BudsEquipment.com Comments are closed. |