Business Financing and the Section 179 Deduction

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The Tax Deduction Every Business Owner Needs to Know

The business loan Section 179 deduction allows businesses to deduct the full purchase price of qualifying assets financed or purchased during the tax year. The deduction from your gross income helps maximize the value of qualified business equipment purchases and similar investments by increasing your tax deduction. Section 179 eliminates barriers in accessing critical equipment for your business and makes it easy to secure new or pre-owned assets without disrupting your cash flow.

Taking Advantage of the Business Loan Section 179 Deduction

Section 179 was updated in 2018 to include a wider range of business equipment and assets. Now, virtually any business equipment qualifies and allows a business owner to deduct the entire purchase cost from the year it was purchased. This can give a significant tax benefit to business owners and make it easier for them to invest in critical purchases for their business.

Equipment is often the backbone of your business. When that equipment fails or it’s time for an upgrade, Section 179 allows you to put new equipment to work now and keep your business running. With significant tax savings and the availability of equipment financing, your cash flow can remain steady while you invest in your business.

How Does Section 179 Deduction Work?

  • You can claim up to $1.08 million in relevant purchases, with a $2.7 million spending cap. -Many equipment purchases or leases are covered by Section 179, including but not limited to vehicles, office furniture, heavy machinery, and software.
  • It includes new purchases, financed equipment, and pre-owned equipment.
  • The equipment must be purchased in the tax year, before December 31.
  • You can write off 100% of the purchase price on your taxes, rather than only claiming a percentage over a set number of years. This puts more money back in your business immediately.
  • To file for Section 179, you’ll use IRS Form 4562, select the equipment’s dollar amount, and include the form when you file your taxes. Be sure to consult a tax advisor to determine your deduction amount.

It’s important to speak with a tax professional when considering a business loan Section 179 deduction. Specific tax laws go through many changes and a specialist will help to ensure you fully understand what your options are.

Working with a Lender That Has Tax Deductions in Mind

Section 179 covers financed equipment too – meaning you can make smart decisions for your business and get a tax break. At QuickBridge, we make funding smarter. We offer fast short-term financing, including loans for equipment financing that are suited to your specific needs. Our loan specialists provide easy access to the funding you need for equipment, internal property upgrades, or similar expenses that would qualify for the business loan Section 179 deduction.

We don’t just simplify the lending process. Our company utilizes advanced analytics to speed up the process of analyzing loan applications. This means we can take the time to get to know your business and make sure the financing we offer you aligns with your growth efforts. From there, the Section 179 deduction lets you reduce the tax burden of your growth and get value from your investments. Let us be a partner in your success. Contact us to get started today.

* This is not tax advice. Please contact your tax advisor for more info.

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