The Section 179 Deduction is back! This deduction allows businesses to claim the full price of qualified equipment purchases, up to $1,080,000, with a “total equipment purchase” limit of $2.7 million (up from $2.62 million in 2021).
The deduction includes both new and used qualified equipment. Qualifying expenses can include equipment purchases, software licenses, and other business expenses. Keep in mind that there are some limitations on the deduction – consult with a qualified accountant to be sure it’s the right deduction for your business.
In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2022. This means that you can write off your entire purchase cost of qualifying equipment in one year, rather than spreading it out over several years. If you’re business qualifies, this deduction can be a valuable tool in reducing your tax burden.
This deduction is especially beneficial for companies who are in the early stages of business or who are purchasing new equipment to carry them forward into the future. Because the deduction is so generous, make sure you understand all its details – so you can maximize its potential for your business!
This deduction is good on new and used equipment, as well as off-the-shelf software. Additionally, be sure to plan for the deduction by taking into account your business’ tax liability and expenses. To take the deduction for tax year 2022, the equipment must be financed or purchased and put into service between January 1, 2022 and the end of the day on December 31, 2022. Section 179 is back for the 2022 tax year, so make the most of it!
If you have a project please for your gas station, to take advantage of this deduction for 2022 please contact us ASAP.