The Section 179 tax code is not a complicated tax code.
This tax code will allow you to deduct the Full Purchase price of equipment, business use vehicles and software if it was purchased or financed during 2020. You can purchase used equipment too, it just needs to be new to you! Here’s how Section 179 works:
Let’s say you purchase a piece of equipment for $50,000 and let’s consider that you must depreciate that equipment over a 5 year period, you can only deduct $10,000 off of your Gross Income for 5 years, but with Section 179 you can now deduct that full $50,000 in one year (2020)! That means a substantial savings in your pocket instead of giving it to the tax man. The U.S. Government is giving an incentive to small businesses to re-invest back into their companies.
There are some stipulations that exist with Section 179. For instance; if you spent more than $2,590,000 on qualifying equipment purchases in 2020, but less than $3,630,000, the amount that you can deduct will be adjusted.
Most Small Businesses won’t spend over $1,040,000 on equipment purchases per year so they can write off the entire cost of ALL qualifying equipment purchases for 2020.
Buy Rite Finishing specializes in New and Used Finishing Equipment, all of which is covered under Section 179 in the tax code.
Contact us today at 888-647-9929 or email@example.com to discuss an equipment purchase for your paint system or powder coating system and how to keep more money in your business.