After years of constant change in the world of tax deduction levels for Section 179, 2023 is proving to be a record-breaking year for tax deductions for capital equipment. This is good news, after seeing deduction limits in flux, shifting tax value rates and a specter of retroactive measures that have altered the tax landscape.
The fact that this deduction has reached the highest point ever presents a great opportunity for buyers, especially if they purchase equipment on the secondary market. The limits fit easily within the pricing of most items that buyers might be considering.
In 2020, the deduction limit was $1,080,000. This year it’s risen to $1,160,000. The spending cap in 2020 was $2,700,000 and in 2023 it’s $2,890,000. Once you hit the spending cap, the deduction amount will decrease dollar-for-dollar.
In addition, the Bonus Depreciation rate dropped from 100% to 80%, which is considered favorable by businesses purchasing about the spending cap in 2023. Of course, all equipment must be purchased, installed and operating before EOD on Sunday, December 31, 2023 in order to qualify for the full deduction.
Calculating Your Savings
Want to know what Section 179 can deliver this year? Section 179 provides a calculating tool that helps you determine your savings on equipment purchased in 2023 when you take advantage of this significant deduction.
Talk To An Expert
For over 30 years we've helped thousands of facilities with getting the best pre-owned medical imaging equipment and services to provide them with their best investments. The team at Atlantis Worldwide is here to help you. Contact us today.
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Meet the author: Vikki Harmonay