Important end of year announcement: Section 179 Deductions
Under current US tax law you may be able to write off the entire purchase price of Cadwell equipment on this year’s tax return when you purchase before the end of the year.
Section 179 of the IRS tax code allows businesses to deduct the 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. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Who Qualifies for Section 179?
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2020 should qualify for the Section 179 Deduction (assuming they spend less than $3,630,000).
Section 179 at a glance (excerpted from section179.org)
Limits of Section 179
Section 179 does come with limits – there are caps to the total amount written off ($1,040,000 for 2020), and limits to the total amount of the equipment purchased ($2,590,000 in 2020). The deduction begins to phase out on a dollar-for-dollar basis after $2,590,000 is spent by a given business (thus, the entire deduction goes away once $3,630,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.
Section 179 Qualifying Property
Section 179 was designed with businesses in mind. That’s why almost all types of “business equipment” that your company buys or finances should qualify for the Section 179 deduction (if your total spend is less than $3,630,000), and if the equipment is placed into service by December 31, 2020.
Bonus Depreciation is offered at 100% in 2020, and now includes used equipment.
Section 179 can change each year without notice (Section 179 has even changed mid-year), so it benefits you to take advantage of this generous tax code while it’s available.
For more information on, or a personal demonstration of, Cadwell diagnostic and monitoring equipment for your office or hospital, reach us at 1 (800) 245-3001 or explore cadwell.com.
Important note: This information is provided for informational purposes only and is not intended as a substitute for obtaining accounting, tax or financial advice from a professional accountant.