Section 179 is an attractive tax deduction for businesses. An increasingly popular use of the Section 179 deduction is for software. When you buy software or equipment for business uses, you can get tax deductions for buying and using them.
Section 179 Tax Deductions for 2020
This year, the Section 179 limit has been increased to $2,500,000! With this tax update, many potential buyers are now very excited about the savings increase and ready to acquire new software and equipment to help grow their business.
How Much Can I Save on My Taxes This Year?
It depends on how much qualifying equipment and software you purchase and put into use this year. To show you your expected tax savings, you can check this link to a Section 179 Calculator.
When Do I Have to Do This By?
Section 179 always expires at midnight, December 31st. So to take advantage of Section 179 this year, you must buy (or lease/finance) your equipment, and put it into use, by December 31st of this year.
To enable you to leverage an affordable payment option, you can also use a Lease Finance option. To find out more, click here.
How do I use the Section 179?
To elect to take the Section 179 Deduction, simply fill out Part 1 of IRS form 4562, available for download at Section179.org.
If you do not feel comfortable completing the form yourself, your tax preparer can easily take care of form 4562 for you. Your tax preparer may also be able to advise you of additional Section 179 Deduction and Bonus Depreciation savings that may be available to you.
If you’d like to take advantage of Section 179 before the end of the year and purchase your software now, contact your Microsol Resources Account Executive or email us at firstname.lastname@example.org.