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Section 179 Demystified: Unlock Hidden Tax Benefits on Equipment Purchases…

- - - - The maximum Section 179 deduction for 2023 is $1,160,000. However, there is a spending cap of $4,050,000. This means that if a business purchases $4,050,000 worth of qualifying equipment in 2023, they can only deduct $1,160,000 of that amount in the current year. The remaining $2,890,000 would have to be depreciated over a period of time.
  - - - Computers and peripheral equipment
      - Office furniture and fixtures
      - Manufacturing equipment
      - Vehicles
        
        Passenger vehicles are only eligible for a deduction of $28,900 in 2023.
        
        The deduction is not available for passenger vehicles unless they have a gross vehicle weight rating (GVWR) of more than 6,000 pounds.
      - Tools and machinery
      - Software