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With the year’s end rapidly approaching, now is the right time to plan for taking advantage of the Section 179 tax deduction. This deduction allows our customers with their own landscaping, construction, and agricultural businesses to
benefit from tax incentives while investing in business assets.
Through the Section 179 tax deduction, business owners are able to write off up to 100% of the purchase price of qualifying new and used equipment in the year of its purchase. This year, the incentive is applicable to new equipment that is financed or purchased and put into use by the end of day on Dec. 31, 2022.
If you’re considering utilizing the Section 179 tax deduction, 2022 may be the best year to buy. While this year’s maximum depreciation is 100%, this number will drop to 80% in 2023 and 60% in 2024.
The 2022 guidelines allow expenses up to $1,080,000 to be written off on a maximum equipment expense of $2,700,000. This means that asset expenses over $2,700,000 will begin to phase out dollar-for-dollar. To allow small to medium-sized businesses to benefit the most from this incentive, businesses with purchases totaling over $3,780,000 are not applicable for a deduction.