Seems like every year there are significant changes to the Section 179 Tax Deduction regarding capital equipment purchase deduction limits, shifting depreciation rates and retroactive measures. The good news is, this year doesn’t look a whole lot different than 2019.
In 2020 the deduction limit has gone up slightly from $1,000,000 to $1,040,000. If you equipment is purchased and in service by the end of the day on December 31, 2020, you will qualify to deduct the full amount.
Regarding the spending cap: it, too, has risen slightly from $2.5 million to $2.59 million. Once the spending cap is reached, your deduction will begin to decrease dollar-for-dollar. For example, medical imaging equipment that costs $2.6 million is $10,000 over the cap. You would only be allowed to deduct $1.03 million, with another dollar coming off the deduction for every additional dollar you spent.
In addition, this year the Bonus Depreciation Rate holds steady at 100%. This is a great perk for businesses that will be purchasing above the spending cap in 2020. The best news of all is you can take these deductions on both new and used or refurbished equipment.
Calculate Your Savings Quickly And Easily
It’s easy to calculate how much you can save on your equipment purchases in 2020. Just visit the official website of Section 179 at www.section179.org.
You’ll find a handy calculator tool. You can determine how much you saved on equipment your bought in 2020 and even figure out what you can save with future purchases.Calculate your own numbers here!
Time Is Ticking
If you’re thinking about making a major purchase before the end of the year, quit thinking and go ahead with it. After all, the deduction is the highest it’s ever been. Plus, if you’re thinking of purchasing equipment on the secondary market, the limits are well within the pricing of most items you’d be considering. There are no guarantees what Section 179 will be in 2021.
Talk To An Expert
Not sure if you should make your purchase now or wait until next year? Talk to an expert at Atlantis Worldwide. We’ve been helping clients with their used and refurbished medical imaging equipment purchases for more than 40 years. We can provide you with facts and guidance to help you determine the right purchasing timetable for you. Contact Us Today!
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