Section 179 Tax Break

Section 179 Tax Break Information

Have you recently purchased a vehicle for your business? If so, you may be able to receive an impressive tax break through the Section 179 Tax Deduction. This IRS Tax Code is available to help small businesses with their working capital, giving qualifying businesses a tax write-off for any financed equipment or software. Whether you're buying a new truck for your Trenton business or purchasing a used work van to handle your Feasterville business needs, you can write off the purchase price in the year it was purchased or financed.

For example, if you finance a new Ford F-150 for your Newtown, PA, business for $80,000, you can deduct the entire $80,000 from your taxable income in the year you purchased the vehicle.

What are the 2023 Section 179 Tax Break Numbers?

According to Section179.org, here's a glance at what the numbers for 2023 look like.

• 2023 Deduction Limit - $1,160,000 - Good for new and used equipment and software financed or purchased between January 1, 2023, and December 31, 2023.
• 2023 Spending Cap on Equipment Purchases - $4,050,000 - This amount is how much your small business can spend on equipment every year before you aren't considered a small business anymore.
• 2023 Bonus Depreciation - 80% - After the spending cap is reached, you'll generally find an 80-percent bonus depreciation on both new and used equipment.

Learn More About the 2023 Section 179 Tax Break Numbers at Fred Beans Ford of Newtown

If you'd like to discuss the Section 179 Tax Break further, feel free to contact our finance center. Our experts would love to go over your options and answer any questions you may have.