Section 179 Tax Deduction
2022 has been quite an unpredictable year— we understand the importance of being financially smart and making the right investments to help our companies in the long run. Here at Magic Jump, Inc. we not only want to provide our customers with the best quality inflatables, but also useful information to help you with your business purchases.
We want to bring to light Section 179 of the tax code. Section 179 of the IRS Tax Code allows a business to deduct the full purchase price of qualifying business equipment within the year it's purchased instead of writing off small amounts over many years. That means that if you buy (or lease) a piece of qualifying business equipment, you can deduct the FULL PURCHASE PRICE from your gross income during that year. It’s an incentive created by the government to encourage businesses to buy equipment and invest in the business instead of paying the amount in tax.
In the past years, you could not deduct your entire purchase amount all at once, purchases had to be written off over time.
For 2022, Bonus Depreciation is being offered at 100%. Bonus Depreciation is not offered every year.
Bonus Depreciation includes ‘Used’ equipment.
The Equipment or Software must be used 50% of the time for business purposes.
There are caps to the total amount written off ($1,080,000 for 2022), and limits to the total amount of the equipment purchased ($2,700,000 in 2022)
For more information on Section 179 read more here.
Disclaimer: We are not a tax professional, we are only providing this information for your benefit. Do not take this information solely to make tax decisions. Make sure to consult a tax professional or CPA.
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Take advantage of Magic Jump's wealth of resources and information to keep ahead of the curve in the inflatable industry. Below you'll find several invaluable links to keep your business running smoothly.