Section 179 is a tax code created to help businesses.

“People who complain about taxes can be divided into two classes: men and women.” –Anonymous

Did you know financing or leasing equipment using the Section 179 deduction is preferred by many businesses that want to preserve cash and credit lines? 

The Tax Cuts and Jobs Act, enacted in 2018, will phase out bonus depreciation over the following three years, dropping 60% in 2024, 40% in 2025, and 20% in 2026.

After 2026, the deduction will no longer be available. Bonus depreciation allows a business to accelerate its depreciation write-off quicker than usual. 

Click here to review a Section 179 flier with more details. To customize the flier, you can change the “Cost of Equipment” field on the bottom left. 

According to the IRS, a company can take Section 179 and Bonus Depreciation allowances. Still, Section 179 must be applied first, and any amount over the $1,220,000 limit to Section 179 may then be taken in bonus depreciation.

As with any tax matters, contact your tax professional for details on how this can affect your business. Contact us today!