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What you Need to Know about Section 179 for Small Business Owners

Posted by Electro-Matic on Nov 14, 2023 11:46:45 AM

As a small business owner, it's important to take advantage of any tax deductions that can help reduce your tax liability. One such deduction is Section 179 Depreciation. This allows you to deduct the full cost of qualifying equipment purchased or financed during the current tax year. Here is how buying from EM Visual can help you take advantage of the deduction.

How Section 179 Works

Section 179 allows your business to write off the entire purchase price of qualifying equipment for the current tax year. This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2023 tax return (up to $1,160,000). The highest amount it has been over the past years. Don't let the Section 179 deduction pass you by.

Here is what you NEED to KNOW to qualify:

2023 Deduction Limit = $1,160,000. To take the deduction for tax year 2023, the equipment must be financed or purchased and put into service between January 1, 2023 and the end of the day on December 31, 2023.

Sect 179 - 2023

2023 Spending Cap on equipment purchases = $4,0500,000 - This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (larger businesses that spend more than $3,780,000 on equipment will not get the deduction.)   

Bonus Depreciation: 80% for 2023 - Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached.


Contact us today and let us help you save money on your 2023 taxes.

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