IRS Website Provides Contractors Guidance on Section 179 Tax Reduction Strategies

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Let’s be honest: more often than not, the Federal government falls short when it comes to passing anything that does what’s it is intended to do. There are a lot of reasons why, from bureaucratic inefficiencies, partisan compromise to plain-old bad execution and/or administration.

Section 179 is a Rare Success

Targeting small- and mid-sized businesses, Section 179 is a rare instance of tax policy that works as intended: reducing the cost of needed equipment by allowing the taxpayer to deduct the cost of new or used capital equipment, up to $500,000, from their income taxes.

The IRS has an expansive website covering Section 179 here. Other planning resources, including what equipment purchases qualify, can be found here. A really helpful calculator can be found here.

Disclaimer: The information in this article, and on this site, is not intended to be tax or legal advice. Your business has its own unique situation. You should consult your tax professional before buying property with the intent to take a Section 179 deduction.

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