Section 179 Deduction

This deduction allows a certain amount (maximum adjusted annually) of eligible equipment purchases to be fully deductible as long as there are sufficient profits. This expense deduction begins to phase out when purchases exceed an annual limit, also adjusted annually. The equipment deduction is only allowed to reduce a profit, not increase a loss. Therefore, if you are having a profitable year, consider whether you'll need additional equipment in the first few months of the following year. If so, you may save tax by purchasing the equipment before year-end so you can get the maximum equipment deduction in the current year. If you want to take advantage of this deduction, please contact us concerning other limitations and eligibility requirements. To find this year’s deduction limit and purchase threshold, please see the list provided on our website under Resources titled “Annual Updated Tax Numbers” for this and other limits, thresholds, and rates that change annually.