Thanks to an increase in the Section 179 deduction limit, you are able to reduce your taxable income even more in 2020!
Does my business qualify for Section 179?
The short answer – yes.
Applicable for both new and used equipment, Section 179 allows companies to write off the full purchase amount for qualified equipment in the year it is purchased.
All businesses (small, medium or large) that purchase within 2020 are eligible. The spending cap for the “total amount written off” is $1,040,000, while the “total amount of equipment purchased is” is $2,590,000 – once $2,590,000 is hit, the deduction begins to “phase out on a dollar-for-dollar basis.” This is a huge benefit to small and medium-sized businesses since they usually don’t hit that high of an expense.
Eligible equipment can range from production machines, office furniture, vehicles, and even software.
Interested in taking the Section 179 Deduction?
In order to qualify, equipment purchase/lease must be between January 1, 2020, and December 31, 2020. To take the Section 179 deduction, the IRS has provided Form 4562.
For more details and information about Section 179, please visit section179.org.
Take Action Today!
Before 2020 comes to an end, take advantage of this opportunity to invest in your business.
Use the Section 179 tax calculator to estimate your potential tax savings before you buy. Don’t forget, there is 0% financing with CNH Industrial Capital.
Still, need to purchase before the year is over? Check out our available equipment and give us a call!
CNH Industrial Capital & Groff Tractor & Equipment does not provide tax, legal or accounting advice. All customers are encouraged to seek their own professional advice on the proper treatment of these transactions. Form #US20064CNH 11/2020 ©2020 CNH Industrial Capital America LLC. All rights reserved. CNH Industrial Capital is a registered trademark in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates.