Tax Savings with Section 179 and QAOM
The bottom line in most businesses is exactly that – the bottom line, profit, cashflow, money-making, and money-saving. In a year that has been so weird and full of change, that is one thing that has not changed.
Having led with that, we are getting to the time of year where well-off businesses are scrambling for tax deductions before the end of the year. Thanks to the US Government, there is a way to get a big deduction this year without needing to go through any tax loopholes:
Section 179 of the IRS Tax Code.
Section 179 was created as a way to incentivize businesses to invest in themselves by upgrading their equipment. Because of this deduction, businesses can deduct up to $1,040,000 in qualifying equipment that was leased or purchased during 2020.
· Machines purchased for business use
· Tangible personal property used in business
· Business vehicles weighing in excess of 6,000 lbs
· Office Furniture
· Office Equipment (Copiers, Printers, Scanners, etc)
· Roofing, HVAC, security systems, fire alarms, and more
The italicized equipment is where we come in…
When you purchase a printer/copier from Quality Assured, you will be able to deduct the full purchase price of the equipment from your 2020 taxes.
In order to deduct the full purchase price of a copier lease from your 2020 taxes, you will need to have a ‘$1 Buyout’ lease. With this specific lease, you will be able to deduct the full purchase price even though you did not pay the whole amount in 2020. In many cases, the amount that you save in taxes will be more than your first year of payments on the equipment. As an added bonus, you own the copier at the end of the lease as well, so you get all the benefits of purchasing the copier without the upfront cost.
How We Can Help
If you are planning to put off purchasing or leasing a new (or used) copier until 2021, stop by our website and take a look at how making that purchase before the end of 2020 can save you money. Fill out the contact form and book a meeting with one of our representatives so we can walk you through what this savings process looks like.