Reduce Your Tax Bill with Section 179

Section 179

Section 179 allows your business to deduct the full price of capital equipment in the current tax year instead of depreciating it over the useful life of the equipment. What that means for you is that you can reduce your taxable income for the year and in turn, substantially reduce the amount of tax you owe.


Is there a deadline?

To qualify for this deduction in 2022, you must purchase the equipment and take delivery by December 31, 2022. If you’re going to take advantage of Section 179, it’s important to get on the schedule as soon as possible so we can make sure you get your rig in time to take use this tax incentive.

Take the first step by requesting a quote through Build A Rig:


Do I qualify for the deduction?

Most texturing businesses will be able to use this incentive, as any business purchasing, financing, and/or leasing equipment should be eligible. There is a cap for how much you can write off in a single year, but it is set at $1,080,000.


How do I use Section 179?

The deduction is not automatic so you will need to elect to take it when filing your taxes. Your tax professional can advise you on exactly what forms need to be filled out so make sure you talk to them before filing!


Can I still qualify for the deduction if I finance equipment?

Yes! Section 179 qualified financing exists and it could carry some additional benefits for you:

Let’s say you purchase a $25,000 spray rig and finance the total purchase price.

Using Section 179, you can write off the $25,000 purchase price of the equipment. Assuming a tax rate of 21% (your tax rate may be higher or lower), this $25,000 deduction would save you $5,250 in tax.

Since you financed the equipment, you put $0 into the machine up front and you will save $5,250 in tax, so when taxes are filed, you end up with $5,250 more cash than you would have without the write-off, even though you purchased a piece of equipment. You can then use this extra cash in any way that suits the needs of your business.

These numbers are just an example, but hopefully you can see that Section 179 could save you a lot on taxes and provide some additional cash flow for your business.


Talk to your accountant!

It’s always a good idea to talk to a tax professional when deciding on the best tax strategy for your business and to make sure that your taxes are filed correctly to take full advantage of incentives like Section 179.

In the meantime, take the first step by requesting a quote through Build A Rig or give us a call at 877-833-4342.



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