Your business relies on certain equipment to run smoothly. In the past, the costs of investing in your company had to be written off over several years. Now, with the Section 179 deduction, you can purchase needed equipment and have it written off completely in the same tax year. This allows you to make necessary improvements, like scheduling a roof replacement, that help your business function safely.

What Is the Section 179 Deduction?

This tax code allows businesses to deduct the full price of any qualifying equipment that is purchased or financed and put into use during the tax year. If you need a roof replacement in 2020, this tax code will allow you to deduct the full amount up to $1,040,000.

A write-off can still be applied for all equipment purchases up to $2,590,000. The deduction will be reduced on a dollar-per-dollar basis on any spending that exceeds this amount up to $3,630,000.

What Are the Benefits for Small Businesses?

The Full Deduction Can Be Made in the Tax Year

The most significant benefit of this tax incentive is that it allows your business to write off equipment purchases fully in the same tax year. This allows you to get the money back for the entire investment in a reasonable time frame.

Before, you would only get a partial refund over several years. Having this money back in your pocket will allow you to make additional improvements to the business next year. 

Most Material Goods Qualify

A roof replacement is not the only equipment that qualifies for this deduction. Most tangible goods and software that businesses need to operate are eligible. The deduction encompasses everything from office furniture and computers to machinery and building improvements. Personal property needed to operate the company is also applicable, and commercial vehicles and partial business use items can also be deducted for a certain percentage of the costs. 

Make use of the Section 179 deduction in 2020 by having the roofing contractors at ChemTech Roof & Insulation Systems Inc. update your structure. For over 25 years, this commercial roofing company has provided roof replacements and preventative maintenance services to businesses in Winston Salem, NC, and the surrounding Triad area. They’ll work with you to design a new roof that will meet your budget and last for years. Call (336) 767-4500 to discuss this tax incentive with a friendly representative, or visit their website to learn more about their services.