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Section 179


 

SECTION 179 AT A GLANCE

2022 Deduction Limit = $1,000,000
This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2022, and the equipment must be financed/purchased and put into service by the end of the day, December 31, 2022.

 

2022 Spending Cap on equipment purchases = $2,5000,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive".

 

Bonus Depreciation: 100% for 2022
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.

 

 

CALCULATE YOUR TAX DEDUCTION


 

 
 
 
 

 

Cost of Equipment:

Section 179 First Year Write-Off:

 
 

100% Bonus Depreciation:

(On any remaining amount above $1,000,000)

 
 

Normal First Year Depreciation:

 
 

Total First Year Deduction:

 
 

Tax Savings on Equipment Purchase:

(Assuming a 35% tax bracket)

 
 

Lowered Cost of Equipment after Tax Savings:

 

 

If you have any questions regarding the Section 179 tax deduction or would like more information, please contact us at sales@hermance.com / sales@hermance.com