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Section 179 Savings Calculator
The Section 179
For 2022, the IRS is granting one of the most generous tax deductions in years for equipment purchases! You can use Section 179 to reduce your taxes by depreciating a majority of your equipment purchase costs in the current tax year. To make the program even better, the deduction can be applied to cash purchases as well as purchases under our $0 upfront cost Service Term program.
What is Section 179
Section 179 is a special provision in the US tax code that allows organizations to depreciate more of their equipment purchases than normal. It is designed to stimulate economic growth by giving organizations the ability to purchase equipment and receive a higher than normal tax deduction in the form of accelerated depreciation. Normally, the tax code allows for equipment to be depreciated over the course of several years, which is typically 20% per year over 5 years for small equipment purchases. However, Section 179 gives you the ability to accelerate the amount of the depreciation within the same year as it is purchased. If you expect an operating profit this year, it might make sense to purchase equipment before the end of the year so you can receive this special tax deduction, thereby reducing the net cost of the equipment. The great thing about this incentive is that it also applies to equipment that is financed or leased. Therefore, you can receive the tax write off this year without even spending the cash on the equipment!
Additional Savings for 2022
The bonus depreciation amount is uncapped for 2022. Therefore, purchases exceeding the old cap of $3,670,000 can qualify for bonus depreciation.
Section 179 Website
Additional Section 179 Deduction Calculator
Section 179 form & Instructions – IRS Website
Bonus Depreciation Details
The calculator is for illustrative purposes only. Please consult with a tax professional prior to making decisions that may impact your taxes.
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