LUBBOCK, TX – Should you purchase additional equipment before the end of the year?
Tax specialists say that each filer will have a different answer, but an increase in the deduction limit under Section 179 of the tax code could have you leaning towards a yes.
For 2021, the deduction limit has been increased to cover the total cost of new and used equipment purchased and placed into service before December 31, 2021.
The limit is now at more than $1 million ($1,050,000). Still, the deduction is reduced “dollar-for-dollar” to the extent that qualifying new and used equipment of $2.6 million or more is purchased and placed into service. It is phased out when $3.67 million or more is purchased and put into service.
For those unable to take advantage of a Section 179 deduction, 100 percent bonus depreciation is generally available for qualifying new and used equipment purchased and placed into service in 2021.
(SOURCE: All Ag News)