As we enter into the final days of the year, I’ll remind you one more time to take advantage of Section 179 for 2021. There’s a deduction of up to $1,050,000 just waiting for you, and if you don’t use it, well, you’re just leaving money on the table.
Now, all year I’ve been harping on the effect supply chain delays will have on Section 179 and its “midnight 12/31” deadline. As it stands, there are definitely items you will not get by the deadline. So let’s instead focus on what you CAN do.
Here are three “no supply chain issue” ways you can use Section 179 for 2021, even at this late hour:
- Buy (or Finance) Eligible Software
A Section 179 deduction can be taken for common “off the shelf” software (this means non-custom, non-modified software). But in 2021, “off the shelf” means downloadable, SAAS, etc. This can include ERP systems, CRM software, and more. As always, ask your tax professional, but it’s a good bet that the software you need is eligible, and you can have it purchased and running in an hour.
- Buy (or Finance) Used Equipment
Used / preowned equipment doesn’t need to be manufactured. In many cases, it doesn’t have far to be delivered. There’s a good chance you can wake up Thursday Dec 30th, and decide “I need that used widget I saw for sale a few miles away”. If you want Section 179 Financing for the used equipment, you contact us, and we get you approved that same day. You get the equipment Friday the 31st, start it up, and even do a small job with it that afternoon. And you then get your Section 179 deduction for 2021. How cool is that?
- Hit the Store
We’re not talking huge dollar amounts here, but you could do worse than hitting a retailer or two and loading up a few carts with eligible items your business needs (most tangible equipment your business needs will qualify for the tax deduction.) No waiting, no muss, no fuss.
There you go – three ways you can still use Section 179 and not worry about supply chain issues.
Have a great holiday everyone – we’ll see you in 2022.