The Federal Section 179 Deduction increased to $1,080,000 for 2022
$1,080,000 WRITE-OFFSection 179 Federal Income Tax Deduction: This deduction allows a company to deduct the first $1,080,000 of equipment (Section 179 Property) acquired in 2022 from their taxable income. For companies acquiring up to $2,700,000 of equipment, this deduction is available in full. It then phases out on a dollar-for-dollar basis for amounts over $2,700,000. Financing or leasing with a $1 buyout qualify.
100% BONUS DEPRECIATION!In addition to the Section 179 Federal Tax Deduction, businesses can also take a 100% bonus depreciation on the adjusted basis for both new and used equipment after exceeding the $1,080,000 write-off. Financing or leasing with a $1 buyout qualify.
STANDARD DEPRECIATIONIn addition to the $1,080,000 write-off and bonus depreciation, companies may be eligible to deduct federal depreciation on the adjusted basis of their qualified equipment, state depreciation, local tax incentives and interest expenses. Financing or leasing with a $1 buyout qualify.
Always check with your accountant or financial adviser to verify tax or accounting issues and any tax benefits. Tax laws are subject to change at any time and their application is highly dependent upon the unique facts and circumstances of any particular taxpayer. The information on this page is offered as general guidance and is not intended as specific legal, tax or accounting advice.