The Section 179 deduction is huge in 2022 (a full $1,080,000 – that’s
up 30k from last year). Combine this generous deduction with Crest Capital’s 'Section 179 Qualified Financing', and you can keep thousands of dollars liquid instead of giving it to the IRS.
Learn More About Section 179 and Financing with this Free Report ->
With Section 179, any business can write off the entire/cumulitive purchase price of new and used qualifying equipment on their 2022 taxes. What does this mean to your bottom line? Use Crest Capital’s free Section 179 calculator to find
out. It’s fully updated for 2022 Section 179 limits, and easy to use.
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 2022 Section 179 deduction is $1,080,000 (that’s one million, eighty thousand dollars). A full 30k
jump from last year. This means your company can buy / lease / finance new or used equipment, and
write off the full cumulative purchase price on your 2022 taxes. This can result in big tax savings, and
really help your bottom line.
To use Section 179 for 2022, the equipment must be acquired and put into service by midnight
12/31/2022. To claim the deduction, simply use this Form 4562.
The Section 179 deduction limit for 2022 has been raised to $1,080,000. Your company is allowed to
deduct the full cost of equipment (either new or used), up to $1,080,000, from 2022’s taxable business income. Further, you can purchase up to $2,700,000 in equipment – after you reach that limit, the deduction will decrease on a dollar to dollar basis.
Section 179 encourages small and mid-sized companies to invest
in themselves. As mentioned, the full $1,080,000 deduction can be claimed, all the way to the $2,700,000 spending cap. Once
that limit is reached, the Section 179 deduction will decrease dollar-for-dollar (this means it will reach zero once $3,780,000
worth of equipment is purchased.)
Can you see why we say it’s for small and mid-sized companies? In plain terms, most small to mid sized businesses will not reach 3+ million in purchases, making it a very viable tax deduction.
The Section 179 deduction does have a hard and fast deadline: to use the deduction for 2022, the
equipment must be purchased (or financed/leased), and put into service by 11:59 pm, 12/31/2022.
Note for 2022: Please keep in mind supply-chain issues when making your Section 179 purchases. The
earlier in the year you do it, the better.
The Section 179 Tax Deduction is now a permanent part of our tax code. And there are yearly inflation-
adjusted increases. For example, it was $1,040,000 in 2020, $1,050,000 for 2021, and is now $1,080,000
for 2022 (nice 30k jump!) Definitely take advantage of this excellent business tax deduction.
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 this Form 4562.
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