USA Taxes: Section 179 for Small Business Owners (Accelerated Depreciation): Deduct if In-Service by End Of Year
This site is not a tax adviser, this is FYI ONLY. Consult your own tax adviser. See also Section 179.org.
For a small business owner, the US federal tax code contains a benefit: Section 179 of the internal revenue code. Section 179 at a Glance for 2020, as per Section179.org:
- 2020 Deduction Limit = $1,040,000
- 2020 Spending Cap on equipment purchases = $2,590,000
- Bonus Depreciation: 100% for 2020
In essence, you can write off (fully deduct) depreciable assets acquired and put into service in 2020 as expenses up to a limit of $A_LOT (for federal tax purposes). Any small business that needs a new computer, office gear, camera, or any normally depreciable asset might consider making those purchases (and putting them into service) that gear by Dec 31, 2020.
The deduction is good on new and used equipment, as well as off-the-shelf software. Equipment must be financed/purchased and put into service by the end of the day, 12/31/2016. Consult your tax advisor as this is only general information.
Need help deciding on a computing or photographic upgrade and/or new system. Lloyd offers consulting.