TAX BENEFITS
Take Advantage of IRS Section 179!
- The deduction limit for Section 179 is now $1,160,000.
This means that if your company can buy (or finance) a piece of equipment, and deduct the Full Purchase Price (over a $1 Mil) from their gross income.
- The 2023 Section 179 deduction threshold for the total amount of equipment that can be purchased is now $1,160,000.
This means that your company can purchase more equipment and still have the benefit of the Section 179 deduction.
- The bonus depreciation has changed and applies in tax year 2023.
For new business assets/equipment purchases, the Section 179 deduction applies up to $1,160,000. Since 2020 the Bonus Depreciation Rules is now 100% of deduction up to that limit amount in the same year (for new equipment only).
WHAT DOES THIS MEAN FOR YOUR CUSTOMERS?
If your company finances a piece of qualifying equipment or software, then your company can deduct the Full Amount of the Equipment (for over a $1 Mil) without paying the full amount this year.
In fact, the amount your company saves in taxes could be greater than what you paid in the first year of a lease. Their equipment is making your company money from day one!
For more information, please call:
Access Capital
(866)434-7555
EXAMPLE: Equipment Cost of $150,000
First Year Write-Off: $150,000
$150,000 is BELOW the max. Section 179 write-off
80% Bonus Depreciation: N/A (as of 2020)
On any remaining value above $150,000:
Normal 1st Yr. Depreciation: N/A (as of 2020)
Depreciation calculated at 5 years = 20%
Total 1st Yr. Depreciation: $150,000
Tax Savings
Assuming Rate of 21%: $31,500
$150,000 x 21% = $31,500
1st Yr. Net Cost
After Tax Savings: $118,500
$150,000 – $31,500 = $118,500
*Credit & equipment restrictions apply. All tax benefits should be thoroughly reviewed with your tax preparer or accountant. This program does not assume your company will qualify to take advantage of the IRS Section #179 depreciation schedule which allows first year depreciation of certain assets acquired. The amount of previous depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax advisor or accountant for additional information. Equipment must be purchased and placed in service by 12/31/12.