Equipment you’ve purchased to meet COVID-19 measures qualify for Section 179 tax deductions!
Adjusting operations for the coronavirus has not been easy for many businesses. Or, for that matter, cheap. Sanitizing stations, temperature checks, signage, dividers and shielding, any additional business equipment you had to purchase to keep your business moving safely… all this can rack up a pretty hefty (and likely unanticipated) operating expense.
Section 179 of the IRS tax code can help recoup some of these unanticipated expenses. While this particular deduction is not new, many may not have anticipated that it applies to many of the purchases made necessary for safe operations during the COVID-19 pandemic—even those that were financed.
We encourage you to look into what you may be able to save for your business by utilizing Section 179. Of course, we’re IT experts, not tax experts, so make sure you consult with a tax professional in that regard as well. Section179.org is a free resource that answers Section 179 questions, providing tools and information for businesses.
We can tell you that some limits to what can be deducted do apply. For instance:
- Deductions can only be claimed on equipment used more than 50 percent of the time for business purposes.
- This deduction is unaffected by other government programs, including PPP loans, as long as the equipment was purchased and utilized before December 31 and there is still taxable income left after all other program adjustments.
Again, we recommend that you take this up with your tax professional.
Don’t pass up the chance to receive a considerable discount on some mandatory investments, especially after so many businesses have taken such a huge hit. To start a discussion about what you can do to take full advantage of this opportunity, give Virtual Business Solutions a call at (504) 840-9800 today.