Section 179 of the IRS Tax Code gives your business an immediate deduction of the full purchase price of qualifying vehicles and equipment purchased and used during the tax year. This allows a decrease in 2022 tax liability (rather than capitalizing an asset and depreciating it over time in future tax periods). Your business may deduct up to $1,050,000 in 2022 with purchase prices up to $2,620,000! Once the equipment purchased exceeds that number, the deduction reduces on a dollar-for-dollar basis.
It’s This Easy:
- Make sure your asset is eligible: Physical property that is purchased or leased, used more than 50% in your business, and not acquired from a related party.
- Start using the asset: You must start using the asset in your business before the year’s end to qualify for the deduction.
- Claim the deduction: You claim the Section 179 deduction on Part I of Form 4562 (the IRS Depreciation Form). You will have to include a description of the property, its cost, and the amount of Section 179 you’re claiming for that asset on Line 6. If you need more room, you can attach a list to Form 4562.If you are thinking about joining The Ready Jet family, the time to buy is now! This 2022 tax deduction is only available on purchases made between January 1, 2022, and December 31, 2022, and is not guaranteed in 2023.
