In all that has happened this year, it’s easy to forget about great tax incentives like Section 179, but it’s still here, it’s still valid, and it’s bigger than ever, with an inflation-adjusted maximum deduction of $1,040,000 (that’s a cool million and forty thousand). The maximum equipment purchase is sitting at $2,590,000. Those are nice big numbers that all small businesses can be happy about.
For small and medium businesses, this can be very attractive for 2020. Many businesses have had to retool and purchase equipment they didn’t count on purchasing. Think about things like plexiglass dividers for retail counters, maybe outdoor seating and furniture, or retrofitting the office to spread things out.
Some businesses are even buying their workers office equipment to use at home – desks, computers, printers, etc. These are Section 179 eligible (check with your accountant of course, to see the percentages. In other words, if a company buys an employee a new computer, but it will be 25% personal use, there may be an adjustment in the deduction.)
Like all entities, the IRS has offices running on smaller crews and such, but they are still operating, and Section 179 is an unmovable part of the tax code. So it’s here for all of 2020 and beyond. Plus, it’s not affected by any other government assistance or program – for example, if you got a PPP loan, that does not affect your Section 179 deduction.
2020 has been a strange year so far. But Section 179 is as strong and “normal” as ever. And that’s reassuring, isn’t it?
Give us a call or send an e-mail if we can help with any material handling needs. If you are paying outright or financing, Section 179 applies!
We have some very competitive lease rates and can tailor a lease to meet YOUR needs.
Call us at 803-783-1171 or e-mail at sales@southlandsc.com!
You can also check out https://www.section179.org/ for more information.
