Section 179 of the IRS tax code allows businesses to deduct the purchase price of qualifying equipment purchased or financed during the tax year.
This means if you buy or finance qualifying equipment, you can deduct the FULL PURCHASE PRICE (up to $1.04 million total in 2020) from your gross income for the year*.This deduction is an incentive for small-to-medium businesses, so there’s a cap on how much you can spend on qualifying equipment each year before your max deduction is reduced dollar-for-dollar. For 2020, the cap is $2.59 million; so spending $3 million on qualifying equipment would mean your max deduction is reduced to $410,000. Most new and used equipment, purchased or financed, qualifies for the Section 179 Deduction.*
(Not all buyers are eligible for tax deductions. EquipmentShare does not provide tax, legal or accounting advice. Contact your CPA or financial advisor for advice.)*
An EquipmentShare rep can help you find the right equipment for your fleet today.
Qualifying new AND used equipment is eligible for 100% first-year bonus depreciation if it was acquired and placed in service after September 27, 2017, and before January 1, 2023. Instead of experiencing staggering depreciation deductions over several years, you can take a 100% depreciation deduction the year you purchase the equipment*.
Take advantage of these incentives and strengthen your fleet before the end of the year. Start the purchasing process today with help from an EquipmentShare rep.
(*Not all buyers are eligible for tax deductions. EquipmentShare does not provide tax, legal or accounting advice. Contact your CPA or financial advisor for advice.)
Equipment purchasing and ownership is easier at EquipmentShare. Get equipment from the OEMs you trust, backed by EquipmentShare’s Track-powered, data-informed Service departments.
• Lifelong equipment service at any EquipmentShare branch nationwide
• Financing options for your preferred OEMs
• Free one-year Track subscription and hardware installation with equipment purchase
Talk with a knowledgeable rep, purchase the right machine for your fleet and keep it running in top condition with Track-powered at from your local EquipmentShare branch.
As the IRS continues to release updates to tax law, it is critical for companies to work with a skilled tax professional to ensure they’re making the best decisions for their financial situation. The information provided here should not be considered as accounting, tax or financial advice. Visit the IRS website for more information.