What's Section-179?

• Section-179 of the IRS tax code allows businesses to deduct the full cost of new or used equipment from their 2023 taxes!

• Deduct the full purchase price of qualifying equipment or software leased or financed during the tax year.

• This means if you finance 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, making a huge difference to your company’s bottom line.
  

Increased 2023 Tax Deduction Limit to $1,160,000

• The new 2023 Section 179 deduction limit is $1,160,000.

• Good on new and used equipment & off-the-shelf software.
  

Spending Cap on Equipment Purchases is $4 million

• This is the maximum amount that can be spent on equipment before the Section-179 Deduction begins to reduce on a dollar-for-dollar basis.

• This spending cap makes Section-179 a true small business tax incentive. This makes it a very effective tax deduction for small and medium businesses, who typically will not hit $4,050,000 in purchases in any given year.
  

100% Bonus Depreciation

• Bonus Depreciation is generally taken after the Section-179 spending cap is reached and is available for new and used equipment.

• The bonus depreciation is made retroactive to 9/27/2017!

To take advantage of Section 179 for 2023, the equipment must be purchased and put into service/installed by midnight 12/31/2023 To claim the deduction, use Form 4562.

Dao Financial Solutions does not give tax advice; please consult with your tax advisor to determine your savings and specific tax implications of equipment finance leases.