Keep More of Your Company’s Money in 2022

The Section 179 deduction is huge in 2022 (a full $1,080,000 – that’s up 30k from last year). Combine this generous deduction with Crest Capital’s 'Section 179 Qualified Financing', and you can keep thousands of dollars liquid instead of giving it to the IRS.
Learn More About Section 179 and Financing with this Free Report ->

See Your 2022 Savings with This Free Section 179 Calculator

With Section 179, any business can write off the entire/cumulitive purchase price of new and used qualifying equipment on their 2022 taxes. What does this mean to your bottom line? Use Crest Capital’s free Section 179 calculator to find out. It’s fully updated for 2022 Section 179 limits, and easy to use.

2022 Section 179
Tax Deduction Calculator^TM

Assuming a tax bracket of:

Section 179 Deduction:

Bonus Depreciation Deduction:
(100% in 2021)

Normal 1st Year Depreciation:

Total First Year Deduction:

Cash Savings on your Purchase:

Lowered Cost of Equipment:
(after Tax Savings)

The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business.

2022 is The Highest Deduction Ever for Section 179

The 2022 Section 179 deduction is $1,080,000 (that’s one million, eighty thousand dollars). A full 30k jump from last year. This means your company can buy / lease / finance new or used equipment, and write off the full cumulative purchase price on your 2022 taxes. This can result in big tax savings, and really help your bottom line.

To use Section 179 for 2022, the equipment must be acquired and put into service by midnight 12/31/2022. To claim the deduction, simply use this Form 4562.

Deduction Limits
Qualifying Property
Prior Year Calculators

Section 179 Deduction Limits for 2022:

The Section 179 deduction limit for 2022 has been raised to $1,080,000. Your company is allowed to deduct the full cost of equipment (either new or used), up to $1,080,000, from 2022’s taxable business income. Further, you can purchase up to $2,700,000 in equipment – after you reach that limit, the deduction will decrease on a dollar to dollar basis.

Section 179 is Meant for Small and Mid-sized Companies

Section 179 encourages small and mid-sized companies to invest in themselves. As mentioned, the full $1,080,000 deduction can be claimed, all the way to the $2,700,000 spending cap. Once that limit is reached, the Section 179 deduction will decrease dollar-for-dollar (this means it will reach zero once $3,780,000 worth of equipment is purchased.)

Section 179 Deduction Limits for 2022
Deduction Limit	$1,080,000
Limit on Capital Purchases	$2,700,000
Bonus Depreciation	100%

Can you see why we say it’s for small and mid-sized companies? In plain terms, most small to mid sized businesses will not reach 3+ million in purchases, making it a very viable tax deduction.

About the Section 179 Deadline

The Section 179 deduction does have a hard and fast deadline: to use the deduction for 2022, the equipment must be purchased (or financed/leased), and put into service by 11:59 pm, 12/31/2022.

Note for 2022: Please keep in mind supply-chain issues when making your Section 179 purchases. The earlier in the year you do it, the better.

A Look Towards the Future

The Section 179 Tax Deduction is now a permanent part of our tax code. And there are yearly inflation- adjusted increases. For example, it was $1,040,000 in 2020, $1,050,000 for 2021, and is now $1,080,000 for 2022 (nice 30k jump!) Definitely take advantage of this excellent business tax deduction.

Qualifying Property for Section 179:

Most tangible business equipment is going to qualify. This includes machines and equipment used in production, computers/servers/printers, all manner of office furniture, office machines like copiers, faxes, shredders, and more, indoor and outdoor signage, shelving, stand-alone storage (like tanks/etc), and most other general use equipment.
Most used and pre-owned equipment will qualify.
Most vehicles used exclusively for commercial/work use will qualify. For example, vehicles with seating for 9+ passengers, at least an empty 6’ cargo area, or a fully enclosed cab-over driving compartment (which would imply a delivery or similar truck of sorts).
Many passenger vehicles that exceed 6,000+ pounds GVW (gross vehicle weight) will qualify. That stated, they are typically limited to a $25,000 deduction, so check with your accountant.
“Heavy equipment” (construction vehicles / farming machines / tree work machines / large drills / etc) typically qualifies.
Section 179 can be used for software as well. There are a few conditions to this: it must be available for purchase by the general public (either in store or download or SaaS), carry a non-exclusive license, and have no custom modifications. This will generally mean operating systems, office suites, CRM software, popular graphics programs, and similar. At this time, this does not include websites and/or phone apps, but this could change (as always, consult your accountant).
Storage structures, like storage tanks, agriculture storage, etc. will qualify. Your main buildings are not considered storage, however.
Some recent additions to Section 179 include many improvements to buildings. Such as new HVAC, alarm and/or fire systems, roofs, and other building improvements may qualify.
If you are looking to lease or finance equipment, and want to know if it will qualify for Section 179, you can ask your accountant, or reference IRS Publication 946.
As stated earlier, most equipment listed above can be used / pre-owned (save for obvious exclusions, like software, etc).

The equipment listed above need not be new – it can be used (but new to you). Almost any "portable" (non-permanently installed) piece of business equipment will likely qualify. If you have any questions on whether something you wish to lease or finance will qualify for Section 179, you can always ask us, or reference IRS Publication 946.

Tax Code Section 179 limits have been modified by various Stimulus Acts over recent years. For further detail, contact your tax adviser or visit www.irs.gov and reference this Form 4562.