2022 Section 179 Tax Break: Upgrade Your Equipment and Software
Upgrade equipment and software and be covered for all costs up $1,080,000, the highest limit ever!
So, you’ve been thinking of buying or leasing new upgrades for equipment and software. Before sitting down and designing a new project for your business, heed these friendly facts.
As a small to medium sized business, the section 179 tax break is aimed at making your infrastructure stronger. Not only do you receive the benefit of a legal tax incentive to lower your operating costs, but also maintain the flow of capital for other elements in your business.
Section 179 in a nutshell:
- Section 179 is eligible for more than you think. If you use it for your business, chances are it is qualified. Wherever general equipment depreciates there is a good chance you can write it under section 179. Even some vehicles for business are eligible.
- Section 179 improves your bottom line. Writing off the full cost of upgrades for equipment and software helps you focus on other areas of your business.
- Section 179 also permits an Equipment Lease or Equipment Finance Agreement. Upgrade for equipment and software in a lease agreement before December 31st, 2021. Financing the equipment might be the most profitable decision you make this year. Pursuing the option of a structured equipment lease you are able to write off the entire amount of upgrade for only a fraction of the cost.
- December 31st is a firm deadline. To take advantage of the deduction for the 2022 year, you must have the software and equipment in use for your business by the last day of the year. If you don’t use it, you lose it.
The Section 179 is not an automatic deduction. You must elect to take the deduction by form, by filling out Part 1 of IRS form 4562. It is available for free.
Taking advantage of the 179 deductions provides momentum you need heading into the new year with upgrades for equipment and software. Before making any changes to your environment be sure to consult our professional services team. To make sure you are making the right additions and subtractions, Vision Computer Solutions can guide your every step. Do not hesitate to contact us for a project consultation.