Equipment Financing and Section 179 Calculator for 2020

Keep Substantial Dollars in Your Pocket for 2020!

It’s a new decade, and Section 179 is better than ever. Combine Crest Capital’s ‘Section 179 Qualified Financing’ with your generous Section 179 tax deduction to keep thousands of dollars in your bank account. Learn More About Section 179 and Financing with this Free Report →

Use this Section 179 Calculator to Check Your Savings for 2020

The Section 179 Tax Deduction encourages small and medium businesses to invest in themselves by allowing a full write-off of the cost of new (and used) qualifying equipment. This free Section 179 calculator is updated for 2020 – go ahead and punch up some numbers to see how much you can save.

2020 Section 179
Tax Deduction Calculator^TM

Assuming a tax bracket of:

Section 179 Deduction:

Bonus Depreciation Deduction:
(100% in 2020)

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.

2020 is Looking Strong, Because the Section 179 Deduction is BIG

The 2020 Section 179 deduction limit is $1,040,000. That’s a robust number, and allows a business to deduct the full cost of new or used qualifying equipment from their 2020 taxes. This can make a big difference to your company’s bottom line.

To take advantage of Section 179 for 2020, the equipment must be purchased and put into service/installed by midnight 12/31/2020. To claim the deduction, use Form 4562.

Deduction Limits
Qualifying Property
Prior Year Calculators

Section 179 Deduction Limits for 2020:

The Section 179 Deduction for 2020 is $1,040,000. This means your company can deduct the full cost of qualifying equipment, up to $$1,040,000, from your 2020 taxes. This deduction is good until you reach $2,590,000 in purchases for the year.

Section 179 is a Tax Break for Small and Medium Businesses

Section 179 is meant to target small and medium sized companies. The full “up to one million dollars” deduction can be claimed until the $2,590,000 equipment purchases limit is reached. Once that limit is reached, the deduction decreases on a dollar for dollar basis, and reaches zero once $3,630,000 worth of equipment is purchased.

This makes it a very effective tax deduction for small and medium businesses, who typically will not hit $2,590,000 in purchases in any given year.

About the Section 179 Deadline

Small and Medium businesses love the Section 179 deduction. But to use it, the equipment must be purchased and put into service (or installed, plugged in, etc.) by 11:59 pm, 12/31/2020.

A Look Towards the Future

The Section 179 Tax Deduction has been made permanent. So it will be here for small and medium businesses. But again, remember the time limit above – to take the deduction for your 2020-year taxes, it must be used during the 2020 calendar year.

Section 179 Deduction Limits for 2020
Deduction Limit	$1,040,000
Limit on Capital Purchases	$2,590,000
Bonus Depreciation	100%

Qualifying Property for Section 179:

Tangible equipment used in business. This includes most goods a business would buy to successfully operate: production machinery, computers/servers, office furniture and office machines, storage tanks, signage, and just about any other type of commercial and/or office equipment.
Commercial use vehicles, such as vehicles with 9+ passenger seats, cargo area of at least 6', or a fully enclosed driving compartment with no body section protruding more than 30" ahead of the windshield.
Passenger vehicles exceeding 6,000+ pounds GVW (gross vehicle weight) will typically qualify for Section 179 (essentially, heavy SUV’s). That stated, they are limited to a $25,000 deduction.
Software can qualify for Section 179. The software must be available for purchase by the general public, and carry a non-exclusive license, without custom modifications. In other words, operating systems, office suites, graphics programs, and similar. Note, at this time, websites and apps do not qualify.
Certain storage facilities and/or structures utilized for agricultural / horticultural purposes will qualify. Examples include movable structures, grain silos, etc. Your “main” building does not qualify, however.)
Certain building improvements, such as Roofs, HVAC, fire protection systems, alarm systems and security systems.
Preowned / used versions of the above equipment will generally qualify for Section 179.
If you have questions on whether equipment you wish to lease or finance will qualify for Section 179, you can always ask us, or reference IRS Publication 946.

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 Form 4562.