500,000 Reasons To Look At Section 179 In 2020
Last year, there was a certain amount of uncertainty regarding the Section 179 limit; it was discussed by Congress on several occasions and the IRS took a while to issue a final deduction limit. As it stands right now, the total 2020 Section 179 tax deduction limit is $3,630,000. This means you can buy or lease up to $500,000 worth of eligible equipment and deduct its cost, providing you place it into service on or before 12/31/16. You may also elect to use Section 179 with more than one piece of equipment, as long as the total deduction amount does not exceed $500,000. So, if you are in the market for new or used business equipment, talk to your tax professional right away. They will let you know if the equipment you want to buy meets the Section 179 eligibility requirements that are set forth by the IRS. *
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.
Links to Our Section 179 Resources
CALCULATE YOUR TAX DEDUCTIONS
The Section 179 tax calculator and tax example scenarios are intended for estimate purposes only. The estimated tax savings may be based on assumptions that do not apply to your specific business tax situation. Please consult with your Anuva Capital Account Manager to determine the full tax implications of leasing equipment. Additional information on business taxes and eligible equipment can be found on the irs.gov website. Congress may make changes to the Section 179 deduction limits without notice.
We’ve updated our calculator to reflect the current changes made to the Section 179 Tax Deduction limits.
These changes were enacted per the passage of the “Protecting Americans from Tax Hikes Act of 2015.”