Do you have Windows 7 computers, or a computer running Server 2008 or 2008 R2 that will lose support in January 2020? Begin your upgrades now and maximize your 2019 Section 179 Depreciation Deduction!
What is the Section 179 Tax Deduction?
Section 179 of the IRS tax code allows businesses to deduct full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.
To qualify for the Section 179 Deduction, the equipment must be purchased and put into use between January 1 and December 31 of the tax year you are claiming. Equipment qualifies whether new or used (but must be new to you), and regardless of whether it was purchased outright, leased, or financed.
- Tangible personal property used in business
- Computer “Off-the-Shelf” Software
- Office Equipment
What are the limits of Section 179?
The deduction limit for Section 179 is $1,000,000 for 2019 and beyond, while the limit on equipment purchases remains at $2.5 million.
Further, the bonus depreciation is 100% and has been made retroactive to 9/27/2017. It is good through 2022. The bonus depreciation also now includes used equipment.
Section 179 offers small businesses a great opportunity to maximize purchasing power, but it can change each year without notice! It benefits you to take advantage of this generous tax code while it’s available.
Always contact your CPA for tax advice. Click here for more information on the Section 179 deduction, deduction calculators, and more!
Have some questions about upgrading? We’re hosting a free live webinar on October 8th where we’ll be talking about everything you need to know about getting your operating systems upgraded and protected before January 14, 2020. We’ll also be taking live questions. Registration details below: