Section 179 Increased to $1,040,000 for 2020
Is your business in need of new equipment and software? Are you holding off on acquiring equipment because of capital constraints or other concerns, like conserving your cash?
Consider the tax saving advantages of the Section 179 tax benefit - in 2017 the deduction limit was permanently raised to $1,000,000 and indexed for inflation. This year in 2020, you’re able to deduct up to $1,040,000 for the purchase of new or used equipment, software and other assets.
If you couple this dollar-for-dollar reduction to taxable income with WiZiX’s customizable plans, long overdue asset acquisitions are more affordable than ever and so is the equipment you need to expand your business!
WiZiX has several resources to get you started. Use our Section 179 Savings Calculator to see firsthand how taking advantage of Section 179 can help you manage your taxes. Take special note of the total savings on your tax obligation. Many people find that, if they lease or finance their Section 179 qualified equipment, the tax savings will exceed the total of the first year's payments on the equipment. This makes buying equipment profitable for the current tax year. This is perfectly legal, and a good example of the intended incentive that Section 179 has provided to small and medium businesses.
Contact us today to learn more about Section 179, and how WiZiX can build you a custom plan that is right for your business.
Section 179 Tax Savings Calculator
Section 179 Saving Results:
(on remaining amount exceeding $1,040,000)
(assuming five-year property)
(assuming a 21% tax bracket*)
Frequently Asked Questions
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. We have a fully updated Section 179 Calculator shown above that can show you your expected tax savings. Contact us today to learn more about Section 179, and how WiZiX can build you a custom plan that is right for your business.
What sort of equipment qualifies for Section 179?
Most tangible business equipment, both new and used, qualifies. Additionally, "Off-The Shelf" Software also qualifies for Section 179 Tax Savings.
When do I have to do this by?
Section 179 always expires at Midnight, December 31st. To take advantage of Section 179 this year, you must buy (or lease/finance) your equipment, and put it into use, by December 31st 2020.