Section 179 2022 Tax Deduction

What is the Section 179 Deduction? 

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. 


Here's How Section 179 works: 

Section 179 allows your business to write off the entire purchase price of qualifying equipment for the current tax year. This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179. Purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2022 tax return (up to $1,080,000).


Limits of Section 179:

Section 179 does come with limits - there are caps to the total amount written off ($1,080,000 for 2022), and limits to the total amount of the equipment purchased ($2,700,000 in 2022). The deduction begins to phase out on a dollar-for-dollar basis after $2,700,000 is spent by a given business (thus, the entire deduction goes away once $3,780,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

 

Who Qualifies for Section 179?

All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2022 should qualify for the Section 179 Deduction (assuming they spend less than $3,780,000).

 

Most tangible goods used by American businesses, including "off-the-shelf" software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.

 

For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2022 and December 31, 2022.

 

For 2022, $1,080,000 of assets can be expensed; that amount phases out dollar for dollar when $2,700,000 of qualified assets are placed in service.

Contact

Hertrich Chevrolet Denton

1123 INDUSTRIAL PARK WAY
Directions Denton, MD 21629

  • Contact: (410) 713-4434

New Inventory

Shop New Inventory

Pre-Owned Inventory

Shop Pre-Owned Inventory

Service Department

Explore Service Department

Parts Department

Explore Parts Department