A fantastic way for your business to grow its fleet and work capacity, and save on the tax burden for 2022 is through section 179 and the accompanying Bonus Depreciation. Buy or finance equipment for your business by the end of the year and write it off at full price.
ABOUT SECTION 179
- Deduction limit for 2022 has been raised to a max of $1,080,000 (on qualifying assets).
- Deduction available for up to $2.7 million in purchases.
- Once the limit is reached, the deduction decreases dollar for dollar and up to $3.78 million in equipment purchases.
***** Bonus Depreciation******
Bonus Depreciation allows a business to deduct 100% of the adjusted cost of new or used equipment in the first year of service and is generally taken after the Section 179 spending cap is reached.
*This is not tax guidance. Please consult your tax professional for the
specifics surrounding business tax implications.