Have you considered the Section 179 tax incentive for purchasing equipment this year?
Section 179 of the IRS Tax Code allows a business to take an immediate deduction of the full purchase price of qualifying vehicles and equipment purchased and used during the tax year. This allows businesses to lower their current-year tax liability rather than capitalizing an asset and depreciating it over time in future tax years. A business may deduct up to $1,050,000 in 2021 with purchase prices amounting to no more than $2,620,000! Once the equipment purchased exceeds that number, the deduction reduces on a dollar-for-dollar basis.
How to take advantage of Section 179 in three simple steps:
- Make sure your asset is eligible: Physical property that is purchased or leased, used more than 50% in your business, and not acquired from a related party.
- Start using the asset: You must start using the asset in your business before year’s end to qualify for the deduction.
- Claim the deduction: You claim the Section 179 deduction on Part I of Form 4562 (the IRS Depreciation Form). You will have to include a description of the property, its cost, and the amount of Section 179 you’re claiming for that asset on Line 6. If you need more room, you can attach a list to Form 4562.
If you are interested in purchasing Ready Jet equipment, the time to act is NOW! This 2021 tax deduction is only available on purchases made between January 1, 2021 and December 31, 2021 and may change in the coming years, so take advantage of this benefit while it is available!
Call us today to get a quote: 813-918-6852