Use Your Section 179 Tax Discounts
Reduce your taxable income even more in 2022, thanks to an increase in the deduction limit under Section 179 of the Internal Revenue Code. Now you may be able to deduct from your 2022 taxable income the full cost of qualifying new and used equipment purchased and placed into service in 2022, up to $1,080,000. The deduction is reduced "dollar-for-dollar" to the extent that qualifying new and used equipment of $2,700,000 or more is purchased and placed into service, and is completely phased out if $3,670,000 or more is purchased and placed into service.
DON’T FORGET: To the extent you do not take a Section 179 deduction, 100% bonus depreciation is generally available in 2022 for qualifying new and used equipment purchased and placed into service in 2022. 2022 is the last year to claim 100% bonus depreciation.2
- Buy the new or used equipment you need and keep more dollars in your pocket.