Section 179 is a program set up by the IRS to help small business owners make capital investments in their companies. It allows independent contractors and small business owners to buy the equipment they need to run their business, like new vehicles and trailers, and then deduct the purchase amount from their taxes. Keep reading to get more details on what Section 179 is and how to use it for the 2022 tax year.
WHAT IS SECTION 179 & HOW IT WORKS
The Section 179 deduction allows businesses to write off 100% of the purchase price of qualifying equipment the year it was purchased. This tax code helps potentially lower a business's taxable income and effectively lowers the overall investment cost of the equipment itself. This helps encourage business owners to reinvest in equipment, like trailers, to help grow their businesses and lower their tax bills at the end of the year.
2022 RULES & LIMITS FOR SECTION 179
The IRS has placed some limits on Section 179 for the 2022 tax year. This includes a deduction limit of $1.08 million and a total equipment purchase limit of $2.7 million. This means for the 2022 tax year, businesses can write off 100% of their equipment purchases up to the $1.08 million limit.
WILL MY BIG TEX TRAILER QUALIFY FOR SECTION 179?
Any one of our Big Tex trailers, including our Dump, Utility, Gooseneck, and Equipment models, should qualify as long as you are using it for your business at least 50% of the time. That means you could select nearly any of our dependable, high-quality Big Tex trailers to expand your fleet and take advantage of the Section 179 tax savings at the same time. Below are a few guidelines you will need to keep in mind before you buy:
- Trailers will need to be purchased or leased by December 31, 2022
- Your business must take receipt of any new trailers by December 31, 2022
- Trailers have to be used for business purposes at least 50% of the time
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