Maximizing Tax Deductions with Equipment Financing

Upgrading machinery, expanding a commercial vehicle fleet, or investing in new technology is vital for staying competitive. But did you know that how you finance these assets can profoundly impact your tax liabilities?

Understanding Section 179

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software financed during the tax year. That means if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income.

By pairing an equipment financing agreement with Section 179 deductions, many businesses discover that the tax savings actually exceed the cost of the first year of payments, effectively making the equipment acquisition cash-flow positive in year one.