It’s a new decade, and Section 179 is better than ever. Combine Crest
Capital’s ‘Section 179 Qualified Financing’ with your generous Section
179 tax deduction to keep thousands of dollars in your bank account.
Learn More About Section 179 and Financing with this Free Report →
The Section 179 Tax Deduction encourages small and medium businesses to invest in themselves by allowing a full write-off of the cost of new (and used) qualifying equipment. This free Section 179 calculator is updated for 2020 – go ahead and punch up some numbers to see how much you can save.
The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.
The 2020 Section 179 deduction limit is one million dollars ($1,000,000). That’s a robust number, and
allows a business to deduct the full cost of new or used qualifying equipment from their 2020 taxes. This
can make a big difference to your company’s bottom line.
To take advantage of Section 179 for 2020, the equipment must be purchased and put into
service/installed by midnight 12/31/2020. To claim the deduction, use Form 4562.
One. Million. Dollars. That’s the Section 179 Deduction for 2020. This means your company can deduct
the full cost of qualifying equipment, up to $1,000,000, from your 2020 taxes. This deduction is good until
you reach 2.5 million in purchases for the year.
Section 179 is meant to target small and medium sized companies. The full “up to one million dollars” deduction can be claimed until the $2,500,000 equipment purchases limit is reached. Once that limit is reached, the deduction decreases on a dollar for dollar basis, and reaches zero once $3,500,000 worth of equipment is purchased.
This makes it a very effective tax deduction for small and medium businesses, who typically will not hit
$2.5 million in purchases in any given year.
Small and Medium businesses love the Section 179 deduction. But to use it, the equipment must be purchased and put into service (or installed, plugged in, etc.) by 11:59 pm, 12/31/2020.
The Section 179 Tax Deduction has been made permanent. So it will be here for small and medium businesses. But again, remember the time limit above – to take the deduction for your 2020-year taxes,
it must be used during the 2020 calendar year.
The equipment listed above need not be new – it can be used (but new to you). Almost any "portable" (non-permanently installed) piece of business equipment will likely qualify. If you have any questions on whether something you wish to lease or finance will qualify for Section 179, you can always ask us, or reference IRS Publication 946.
Tax Code Section 179 limits have been modified by various Stimulus Acts over recent years. For further detail, contact your tax adviser or visit www.irs.gov and reference Form 4562.
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