What is Section 179?
Section 179 is part of the IRS tax code that allows businesses to deduct essential business equipment from their income.
How can Section 179 benefit me?
Businesses like yours will be able to deduct business essential equipment purchased/financed in 2020. This includes both new and used equipment purchased and placed in service. Section 179 can provide you with a tax relief for the 2020 tax year, but your equipment must be purchased/financed and in place by midnight of December 31st, 2020.
Will I need Section 179 benefits after I received my PPP loan?
A forgiven PPP loan will not be considered taxable income for 2020. However, you still may owe increased taxes as the loan will reduce the amount of deductions you will be able to write off in your 2020 tax return from rent, payroll, etc. Your business may be able to use Section 179 benefits to offset the additional tax increase by deducting equipment costs. By purchasing/financing equipment in 2020, you’ll be able to release some cash flow for 2021.
How can AP Financing help me with Section 179?
AP Equipment Financing can set up a finance package that will get you the most out of your equipment needs. Section 179 allows your business to deduct the full purchase price on qualified equipment up to $1,040,000 for 2020.
If you still have equipment needs for the last few months in 2020, contact us today and we’ll help you get what you need!
Ready to take advantage of your 2020 Section 179 benefits? Apply here for financing for your next equipment purchase.
Please consult your tax consultant/accountant for full benefits of Section 179.