Tax Incentives: Section 179

Tax provisions accelerate depreciation on qualifying business equipment, office furniture, technology, software and other business items. When you finance such purchases with Axe Business Funding, you may deduct a significant portion, up to $1,040,000 in 2020 (to be adjusted for inflation in future years). There is a dollar-for-dollar phase out for purchases over $2.59 million. Additionally, for 2020 bonus depreciation remains at 100% on qualifying assets. Consequently, not only will Section 179 help bolster your bottom line, you garner the benefits of new equipment and technology that will help grow your business.

To capture these tax savings, qualifying property must be placed in service before December 31, 2020. Simply choose your business equipment and Axe Business Funding will design payments to help you make a profitable decision.

Frequently Asked Questions

Section 179 Tax Incentives

Why was Section 179 created?

Section 179 was created as part of a government stimulus act to encourage small businesses to invest in their growth by providing accelerated depreciation and tax deductions on qualifying business purchases.

What is Bonus Depreciation?

Bonus depreciation allows qualifying businesses that spend more than the Section 179 limit to depreciate up to 100% on the remaining purchase amount. Bonus depreciation is very useful to companies that spend more than the allowed $2.59 million in a tax year. After Section 179 deductions are taken by a small business, bonus depreciation may be applied to further accelerate depreciation.

How do I take advantage of the Section 179 Deduction?

If your company and the assets qualify, fill out applicable parts of IRS Form 4562 and include it with your tax filing.To elect the Section 179 tax deduction, qualifying assets must be purchased and put into service during the tax year for which you are electing the deduction.

What is the 2020 Annual Deduction Limit?

For 2020, the maximum amount you may elect to deduct is $1,040,000 on qualifying property purchased and placed into service during the 2020 tax year. If your purchases exceed $2.59 million, the deduction amount will be reduced dollar for dollar equal to the amount over $2.59 million.

What types of purchases qualify for Section 179?

Purchases of business equipment, heavy equipment, office furniture, computers, software and technology as well as many other business assets qualify for Section 179

Here’s How To Get Started

We are here to help you come up with the best finance solution to meet your businesses needs. The process is simple and we will walk you through it step by step.

Apply
Online

Speak with one of our Finance Specialists to learn about the needs of your business.

Choose a Solution

Your Finance Specialist will work with you to discuss your finance options and make sure your objectives are met. Once an option is chosen we will secure an approval.

Review Documents

Your assigned Specialist will go over the terms, payments and down needed to fund your transaction. Documents will then be emailed to you for your review and signatures.

Fund your Transaction

Most transactions fund within 24 hours of signed documents being returned. Once the transaction is funded a wire will be sent out to the seller of the equipment. You are then free to pick it up and put it to work.