The Section 179 deduction is higher than ever in 2021 (a full
$1,050,000). Combine this deduction with Crest Capital’s ‘Section 179 Qualified Financing’, and you can keep thousands of dollars in your bank account instead of giving it to the IRS.
Learn More About Section 179 and Financing with this Free Report →
Using Section 179, Small and Mid-Sized businesses can write off the full purchase price of new and used qualifying equipment on their 2021 taxes. How much can you actually save in raw dollars? Use this free Section 179 calculator to find out. It’s fully updated for 2021, 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 2021 Section 179 deduction has been raised to $1,050,000 (that’s one million, fifty thousand dollars).
This means your company can buy, finance, or lease new or used equipment, and write off the full
purchase price on your 2021 taxes. This can result in substantial savings.
To use Section 179 for 2021, the equipment must be purchased (or financed/leased) and put into service
by midnight 12/31/2021. To claim the deduction, use Form 4562.
The Section 179 deduction limit for 2021 is $1,050,000. This means your company can deduct the full cost
of qualifying equipment (new or used), up to $1,050,000, from your 2021 taxable income. This deduction is good until you reach 2.62 million in purchases for the year.
Section 179 helps small and mid-sized companies invest in themselves. The full $1,050,000 deduction can be claimed up to the $2,620,000 equipment purchases limit. Once that number is reached, the Section 179 deduction decreases dollar-for-dollar, and reaches zero once $3,670,000 worth of equipment is purchased/financed.
This is why we say it’s for small and mid-sized companies, as most will not reach that spending limit.
The Section 179 deduction has proven wildly popular with small and mid-sized companies. But there is a
deadline: to use the deduction for 2021, the equipment must be purchased/financed, and put into
service by 11:59 pm, 12/31/2021.
The Section 179 Tax Deduction was made permanent several years ago. However, there is typically a small
inflation-adjusted increase annually. For example, it was $1,040,000 in 2020, and is now $1,050,000 for
2021. This is good news, because many companies count on this excellent tax deduction yearly.
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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