Section 179 Never Shuts Down

By | July 6, 2020

2020 is half over, and while most people are saying “thank goodness”, I’m thinking “in all that’s been going on, I haven’t mentioned Section 179 lately.” 

Section 179 is still available

My wife even asked “are you ok, you don’t seem like yourself”, to which I replied “I’ve been ignoring Section 179”… ok, I’m kidding there. Old Fletch knows that wouldn’t be great dinner conversation. But it is true that I haven’t talked about Section 179 in awhile, so let’s do that.

In all that has happened this year, it’s easy to forget about great tax incentives like Section 179, but it’s still here, it’s still valid, and it’s bigger than ever, with an inflation-adjusted maximum deduction of $1,040,000 (that’s a cool million and forty thousand). The maximum equipment purchase is sitting at $2,590,000. Those are nice big numbers that all small businesses can be happy about. 

For small and medium businesses, this can be very attractive for 2020. Many businesses have had to retool and purchase equipment they didn’t count on purchasing. Think about things like plexiglass dividers for retail counters, maybe outdoor seating and furniture, or retrofitting the office to spread things out. 

Some businesses are even buying their workers office equipment to use at home – desks, computers, printers, etc. These are Section 179 eligible (check with your accountant of course, to see the percentages. In other words, if a company buys an employee a new computer, but it will be 25% personal use, there may be an adjustment in the deduction.)

Like all entities, the IRS has offices running on smaller crews and such, but they are still operating, and Section 179 is an unmovable part of the tax code. So it’s here for all of 2020 and beyond. Plus, it’s not affected by any other government assistance or program – for example, if you got a PPP loan, that does not affect your Section 179 deduction. 

2020 has been a strange year so far. But Section 179 is as strong and “normal” as ever. And that’s reassuring, isn’t it? 

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