Looking to buy a Schwarze sweeper? The IRS may be able to help make the cost more bearable with the Internal Revenue Code Section 179 Deduction, which reduces the amount of income on which you are taxed for the year you put your sweeper into service.
Your sweeper depreciates over time, and that depreciation is reported as a deduction on a business’ tax return every year for a certain number of years.
Section 179, however, allows you to deduct the full amount of depreciation related to business property for the year in which that sweeper was put in service.
To qualify, your Schwarze sweeper must be purchased for and used in your business more than 50 percent of the time and put into service by Dec. 31.
You can deduct up to $1,000,000 using the Section 179 Deduction, as long as you spend no more than $2.5 million on capital purchases for your business.
Sweepers by their nature are not likely to be used for personal purposes, so all Schwarze sweepers qualify for full Section 179.
The exact amount that you’ll save using Section 179 depends on the amount of property you buy, your business income, and your tax bracket. However, the savings are often substantial and can dramatically reduce your tax liability. This tax break encourages small businesses to invest in themselves and to purchase equipment sooner rather than later.
Here’s a very easy-to-use Section 179 Deduction Calculator that will help you figure out your potential savings.
To elect the Section 179 Deduction, you need to fill out ‘Part One’ of IRS form 4562. If you need help, your tax preparer will be able to help you elect the Section 179 Deduction.
The way to think about the Section 179 Deduction is that it gives you a tax break for purchases that you’re likely to have needed to make anyway. By taking advantage of Section 179, you can avoid the need to do lengthy depreciation, both saving you money and hassle over the long run.
We believe you will greatly benefit by taking the Section 179 Deduction. But to take advantage of it, your Schwarze sweeper must be purchased and put into service by 11:59pm, 12/31/2019. (When the New Year starts, Section 179 for 2019 is over.)