Section 179 Tax Deduction Details
Buy Equipment Now - Save at Tax Time Later!
This may be the smartest financial decision you make all year! Here's the secret weapon that smart business owners have used for years to fund equipment investments in their business—a section of the tax code called "Section 179".
Section 179 allows businesses to expense 100% of the purchase price (up to $1,080,000) of new equipment purchased, financed, or leased in the current tax year. In a nutshell, if you purchase new equipment today and start using it by 12/31/23, you can save money at tax time! Talk to your tax preparer.
Get the ideal monthly payment tailored to your budget and start investing in your business today! Experience swift credit decisions made in as little as 2 hours.
Check out how affordable your new equipment purchase can be
|With Section 179 Deduction||Without Section 179 Deduction|
|Equipment Purchase Price||$20,000||$20,000|
|Write-Off for First Year||$20,000||$4,000|
|First Year of Tax Savings (21% Assumed Tax Rate)||($4,200)||($840)|
|Cost of Equipment with Tax Savings||$15,800||$19,160|
Here's how to maximize your Section 179 benefits
- Shop for New Equipment at Jon-Don With the industry’s largest in-stock selection and our price-match guarantee, we’ve got the equipment you need at a price you’ll love.
- Keep Your Cash in the Bank YES—financed equipment qualifies! You can deduct the entire purchase price even if you don’t pay the entire purchase amount in 2023. Here’s why this is really smart: When you use a properly structured finance agreement to pay for your equipment, it frees up your cash lines to pay for other business expenses (like payroll, chemicals, gas for your vehicle, etc.).
- Put Your Equipment into Service by 12/31/23 It's not enough to simply buy the equipment—it must be placed into service before 12/31/23 in order to qualify. Be sure to consider any supply chain delays or extended delivery times when making your purchase—don't wait until it's too late!
- Save at Tax Time! Talk to your tax preparer about how you can use the Section 179 deduction when filing your business taxes.