Section 179 Tax Deduction for 2022
After months of research, a nationwide survey revealed that 82% of small business owners plan to use Section 179 of the Internal Revenue Code to deduct the cost of qualifying equipment in 2022. Section 179 provides welcome tax relief for eligible businesses that invest in business equipment.
It is already July, and business owners nationwide are considering their equipment acquisitions for the 4th quarter. We still have several months left in 2022, yet Envision Capital Group LLC is positioned to help eligible business owners reap the benefits of Section 179. We offer application-only funding for equipment up to $500,000, with 24-hour approvals. That means business owners can start planning for what they need!
What The Research Says:
- When asked how familiar they are with the Section 179 tax deduction, under 20% of Business owners said, “highly familiar,” and just over 40% said “quite familiar.”
- Just over 40% of Business owners were familiar with the Section 179 “first-year” bonus depreciation provision.
- Commercial vehicles topped the list of equipment that business owners purchased or financed in 2021, followed by computers, software, heavy equipment, office equipment, office furniture, printing equipment, and general machinery.
- 1 in 3 business owners said they would have purchased or financed more equipment in 2021 if they knew the Section 179 tax deduction limit was $1 million.
- Only 13% of business owners did not purchase or finance any business equipment in 2021.
Business owners are encouraged to speak with their tax and accounting professionals about how they may be able to benefit from taking the Section 179 deduction. This blog post is not intended to, and does not, constitute tax or accounting advice.
What’s New For 2022? (https://www.irs.gov/publications/p946)
For tax years beginning in 2022, the maximum section 179 expense deduction is $1,080,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,700,000. Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2022 is $27,000.
About Envision Capital Group LLC
Envision Capital Group LLC is a customer-focused equipment financing company that provides business owners with fast, hassle-free equipment financing. We have developed an intuitive online platform that simplifies the entire equipment financing process: https://www.envisioncapitalgroup.com/apply-now/