ABP Blog

Section 179 | 2021 Incentives for Your Business

Nov 4, 2020 12:54:27 PM / by The ABP Team

2021 has been a remarkable year that without question has challenged and stretched many businesses of all sizes and verticals. As we eagerly embark on the quick slide through the fourth quarter to 2022, we want to be sure you’re recognizing as many opportunities to keep your cash flow, in your hands, as possible.


Get your office equipment by December 31st to qualify for your tax deductions.


Section 179 helps you ease capital cost constraints. If you purchase your equipment by the end of the code accelerates depreciation.  You can depreciate 100% of equipment value for tax purposes in 2021 resulting in significant income tax service. Ideally, this deduction empowers you to streamline your business workflow and optimizes your processes which will also save you time and cash in 2022.


Are you looking to upgrade your office equipment with Section 179 deductions?


Section179-calculator-exampleOur team is available to you for virtual or in-person demonstrations and consultations. We’re happy to customize a plan for your organization that can offer your side-by-side comparisons of new and used office equipment vs the equipment you have in your arsenal now.

The Section 179 deduction applies specifically to a $1 buyout and cash purchases.


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Regardless of the type of capital equipment you purchase, you must have the purchase invoice in this calendar year to qualify. Additionally, you will want to also take delivery (note: to qualify in the “placed into service” portion of the requirements.)

Wondering what your deductions might look like? We have created a calculator so that you can more clearly see how Section 179 deductions may benefit your company, ask one of our experienced Account Representatives to guide you through the costs and calculations.

What is Section 179?

The Section 179 deduction was enacted to help stimulate businesses like yours and the national economy in an effort to motivate investment and spending through purchases of business equipment. Easy math: if your business can deduct the entire cost of equipment this year, instead of using depreciation incrementally over several years, then you will have more incentive to acquire more equipment realizing higher cash flow for immediate relief.


Empowered by Section 179 Coloradan and national businesses like yours can deduct up to $1,050,000 in 2021 for the purchase of new or used equipment, software, and other capital assets. This deduction is good until you reach 2.62 million in purchases for the year. Your office technology, heavy equipment, machinery, and so much more can earn you sizable benefits. 

 How Complicated is Section 179?


Not very. Keep in mind you want to claim the total cost of qualified equipment from your taxable income as an expense in this calendar year (2021).


What General Equipment is Included?

Generally speaking (follow up with your CPA) the following items are included in Section 179 deductions.


  • Office Equipment, printers, copiers, scanners, wide–format printers, and more
  • Computers & Computer-related Equipment
  • Off-the-Shelf Computer Software
  • Machinery & Equipment
  • Business Vehicles
  • Improvements on a few non-residential buildings (see details in the code)


Visit the Section179.org website


By partnering your allowance with a leasing solution, you are empowered with upgraded equipment, enhanced business workflow, and minimal cash output. We strongly recommend that every business consults with a Certified Public Accountant for a full exploration of the code. If you would like more information on Section 179 and specific 2021 updates, we invite you to reach out to our team for additional information and a white paper on Section 179 from one of our lender partners.



Tags: Section 179 Deductions, 2020 Business Tax, tax code colorado

The ABP Team

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