Chances are you don’t look forward to April of each year, when tax season rolls around – especially if you have a small business. High taxes can really eat away at your profits, which is why you need to maximize all of your possible deductions, and make sure that you make enough money to continue growing your company.
And one of the most powerful tools for doing so is the Section 179 tax deduction. This deduction can have a value of up to $100,000 – and just about every business can qualify for it. Want more details? Take a look below now.
This is a tax deduction available to small-to-medium-sized businesses (SMBs) which purchased any kind of qualifying equipment during the tax year. Any eligible business can write off the entire cost of the purchase, up to a maximum value of one million dollars. Say you run a small chain of retail boutiques, and install a brand new Point Of Sale (POS) system and a server backend that costs $30,000 – you can deduct the entire value of this system using section 179.
The great thing about Section 179 is that, unlike most other IRS deductions, it’s very generalized – and just about any kind of tangible business equipment is eligible. The items can be either new or used. They can also be either leased or financed – not just purchased outright – as long as the purchase was completed within the last tax year. All of these following items are considered to qualify, according to the IRS.
For further details, and to be certain that you qualify for this deduction, we recommend you read the official IRS publication related to Section 179.
It’s simple. Just fill out Part 1 of the IRS form 4562, and make sure to attach it with the rest of your tax return. That’s all you have to do! Confused? We recommend consulting with a tax professional to get help.
If you use Section 179 deductions properly, you’ll be able to save big on your yearly tax bill, and put that money to work. Get started today!
NOTE: This article is purely for informational and entertainment purposes, and should be read as such. This is not tax advice, and should not be interpreted as such. For tax advice, hire a professional tax attorney or CPA.