How to Get the Most Out of Section 179 and Save on Your Taxes
The end of 2021 will be upon us before we know it — and so will your opportunity to take advantage of section 179 to save money on your taxes. If you’re hoping to reduce your tax liability for 2021 (and, let’s face it, who isn’t?) but haven’t yet purchased that piece of equipment, now’s the time to do so.*
Section 179 allows taxpayers to deduct the full amount of a business expense in the year the property is placed into service. This is a big deal. Instead of writing off qualifying equipment a little at a time through depreciation, section 179 allows small and medium-sized businesses to write off the entire equipment purchase price the same year its bought — up to $1,050,000. But that’s not all. Once this spending cap is reached, you may be eligible for a bonus depreciation of 100%.
Section 179 can be just the boost your company needs, especially if you’ve been struggling due to the pandemic. In fact, even if your business benefited from COVID-19 financial assistance (for example, if you received a forgivable Paycheck Protection Program loan from the Small Business Administration), you can still take advantage of section 179 to reduce your taxable income and save money. To get the most out of section 179, your total equipment purchase for 2021 must not exceed $2,620,000. After that, the deduction begins to phase out on a dollar-for-dollar basis.
Now here’s the catch: the equipment you purchase must be placed into service by the end of the calendar year. With supply chains being unpredictable this year, we recommend making your purchase as soon as possible.
If you’re only familiar with the traditional, big-bank approach to small business loans, then you’re probably thinking there isn’t nearly enough time to get the funding you need to purchase your equipment and place it into service by the end of the year. Fortunately, there is another option. Instead of losing valuable time shopping for a small business loan and sweating through a lengthy approval process, let our Client Advocates at Triton Capital help you get the funding you need within 48 hours.
At Triton Capital, we’ve made the funding process fast and easy. You complete one application, and our Client Advocates get you the best terms possible – often within hours and with no down payment or additional collateral. What used to take weeks now takes minutes and hours. Our Client Advocates assist you free of charge, and there’s no obligation to apply.
*Note: please consult a tax professional for advice on your unique situation before making any purchases toward section 179. While we are experts in financing, we do not give legal or tax advice.