What Is A Section 179 Deduction?

What Is A Section 179 Deduction?

Posted on: October 27, 2020 Posted by: bMobile Route Software

Section 179 is a tax deduction in the IRS tax code that allows business owners to deduct the cost of qualified equipment or software purchased or financed during the tax year, so long as it is implemented during the tax year in which the deduction is being claimed. This allows businesses to reduce their tax liability for the current year, as opposed to capitalizing an asset and depreciating it over time.

The purchased software must be utilized for business purposes more than 50% of the time to qualify for the deduction. If you purchased bMobile Route Software this year, section 179 could apply to you. To determine your possible deduction, we suggest using the Section 179 Deduction Calculator. Additionally, for further clarification regarding your qualifying purchase/s, speak to your Certified Tax Preparer, or Accountant.

Sources:

https://www.irs.gov/publications/p946

Section 179 Deduction

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