What is the Section 179 Deduction? Section 179 of the IRS tax code allows businesses to deduct qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the price or a percentage of the purchase (depending on use) from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Who Qualifies for Section 179? All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2019 should qualify for the Section 179 Deduction (assuming they spend less than $3,500,000). To qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2019 and December 31, 2019. For basic guidelines on what property is covered under the Section 179 tax code, please consult an accountant as we are not tax advisors. * *www.section179.org and www.irs.gov are good sources of information regarding this tax deduction but consulting your accountant is highly recommended