Did you invest in new equipment or software for your business this year?
If you answered yes, then we’ve got news for you: you can deduct the full purchase price of that equipment and software from your establishment’s gross income for 2023.
If you answered no, then you still have time to invest in new tools and get a break via the 179 tax deduction!
Wait, what’s the 179 tax deduction code?
In the United States, Section 179 of the IRS tax code states that business’ can deduct the full purchase price of relevant equipment or software that was bought or financed during the tax year.
This not only encourages business owners to invest in their own business’ but stimulates local economies. Previously, companies could only write off part of the purchase price over a period of time, such as the course of an item’s lifecycle. Now, you can write off equipment for the entire amount within the year that it was bought.
What kind of business expenses qualify under section 179?
Most tangible equipment bought for business use is eligible for deduction. That also includes software!
Point of sale software, EMV-related upgrades, equipment or machinery (refrigerators, office equipment, printing equipment or signs), upgrades that make your establishment more energy efficient, as well as structural changes, such as walls, fences, and paved parking area, could also fall under section 179.
How can you get started?
Before 2023 ends, take advantage of this ephemeral tax break. If you’ve been on the fence about investing in some new equipment, this tax break can help you minimize costs and maximize your return on investment. After all, the section 179 tax deduction code was created to encourage business owners to invest in their business, and stimulate the economy in the process.
The deadline to submit your claim is December 31, 2023. Don’t miss your chance to be rewarded for investing in the tools your business needs.
To read more about this win-win situation, consult the official Section 179 site.
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The tax-related information contained herein is informational only and is not, and should not be construed as, tax advice. You should seek the advice of a tax professional regarding your individual tax circumstances. Please note—only businesses operating in the USA can claim Section 179.
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