Write-off options for your business equipment purchases
The general rule is that you can’t simply deduct the cost of equipment as you can with purchases of copier paper, paper towels, and other materials and supplies. You usually have to depreciate the cost of equipment over a set number of years fixed by the tax law.
However, in addition to or in lieu of regular depreciation (explained below), you may be able to write off the purchase price entirely in the first year by relying on other tax incentives for buying equipment.
All of these write-offs apply whether the equipment is new or pre-owned and whether the purchase is financed in whole or in part. It’s very confusing to decide which deductions and write-offs to use; it’s something to discuss with your CPA or other tax adviser. But it’s important to first understand your options.
-the blueprint – A Motley Fool Service – Updated April 2, 2020
Ascentium Capital helps explain:
Please connect with your CPA or Tax Advisor for information on how Section 179 of the 2020 Tax Code can help your business. Also, find more information from the IRS website at: