We are fast approaching year end… Is your business in position to benefit from the Section 179 deduction?

What is Section 179?

Section 179 of the IRS Tax Code allows businesses to write-off the full purchase price of any qualifying piece of equipment or software in the year it was purchased or financed. For example, if a business financed $60,000 worth of equipment in 2021, they can deduct the entire $60,000 from their 2021 taxable income.

Why is financing important for Section 179?

Section 179 is especially appealing to customers that finance their equipment because they gain the ability to deduct the full purchase price of the equipment or software before paying off their loan.

Does my equipment or software qualify for Section 179?

Generally speaking, a sole proprietor, partnership, or corporation can fully expense qualified equipment the year it is purchased and put in use if used for business purposes more than 50 percent of the time.

Many types of purchases generally qualify for the Section 179 deduction. While used items can qualify, it must be new to whomever purchased it. For 2021, equipment must be delivered and in use by December 31.

Qualifying items include:

  • Off-the-shelf software
  • Equipment purchased for business use
  • Computers
  • Office furniture or equipment
  • Most work vehicles that can’t double as a personal vehicle, such as forklifts and trailers
  • Equipment to conform to COVID-19 restrictions (sanitary stations, plexiglass dividers, temperature check stations, etc.)
There is still time in 2021 to take advantage of this unique tax benefit. If you are purchasing equipment before the end of the year, contact the team at KLC Financial by emailing [email protected] or calling us @ 952.224.4300

*KLC Financial, Inc. does not provide legal, tax, or accounting advice. We recommend customers obtain and rely upon such advice from their own accountants, auditors, attorneys, or other professional advisers.

What is the Process?

Once you have chosen the equipment that is right for you, a few clicks and KLC Financial can get you approved and have your money in a matter of days.

  1. Fill Out An Application: Fill out this quick online application. (you are under no obligation).
  2. Speak With A Sales Representative: One of our highly qualified representatives will review your application and get you a competitive option often within a day or two.
  3. Send Us List of Your Existing Equipment or Debt Schedule: Once you have the official quote with the model and equipment number from your vendor email it to us.
  4. Credit Approval: Qualified applicants can receive credit approval on deals up to $500,000 in as little as 2 days.
  5. Make it Official: We will send you a contract electronically or hard copy (if needed), you sign it and return it back to us.
  6. Send you Cash or Payoff your existing debt