Section 179 Tax Savings

Mastercam, Verisurf, Octopuz, and CIMCO all qualify as eligible software solutions under section 179

In short, this tax code allows businesses to deduct the full purchase price of qualifying software/equipment purchased or financed during the year. You can deduct the full price of the software/equipment from your gross income whether you pay in cash or if you finance/lease. This lowers your tax liability and enables you to invest more in your business now!

U.S. companies can deduct the full price of qualified software/equipment purchases, up to $1,000,000, with a “total equipment purchase” limit of $2.5 million. The deduction includes both new and used qualified equipment. In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2020.

Check out this 2020 Section 179 Calculator to see how the Section 179 tax deduction can benefit your company.

Before making a purchase it is recommended you discuss the opportunity in detail with your tax accountant.

News Alert: Section 179 and COVID-19

Oct 20, 2020 – Much of the equipment businesses purchased to conform to COVID-19 restrictions will qualify for the Section 179 tax Deduction. Details on the new Section 179 and COVID-19 page.

Further, eligibility for the Section 179 tax deduction for 2020 is unaffected by any pandemic-related financial assistance a business may have received (e.g., PPP Loans.) In other words, if a company received a PPP loan or any other Pandemic-related assistance, they may still claim their Section 179 Deduction.

News Alert: See the IRS Fact Sheet issued for Section 179

IRS Fact sheet FS-2018-9 provides current info on Section 179 deductions, including the addition of certain building improvements, the 100 percent bonus depreciation, changes to depreciation limitations on vehicles used for business, new treatment of farm equipment, and the recovery period for real property. Despite the 2018 date, the information is still current for 2020. Read the Fact sheet here: New Rules and Limitations for Depreciation and Expensing under the Tax Cuts and Jobs Act

Contact us to discuss making a qualified purchase before the end of the year! Email: [email protected] or call 877-429-5708

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