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Conclusion

Equipment deductions are essential for small companies that rely on purchasing machinery and other equipment to operate. Taking the right deductions, and maximizing how much you deduct, can have a huge impact on your bottom line. Work with a tax professional to make sure you get the deductions you’re eligible for.

FAQ

Are business supplies written off the same way as business equipment?
Supplies are raw materials that you consume as part of running your business. Unlike equipment, they aren’t durable and you don’t use them for the long-term. Typically, you deduct the full cost of supplies when they’re used. Equipment might have to depreciate over many years.
What’s the difference between section 179 and bonus depreciation?
Section 179 allows the full deduction of certain equipment immediately. Bonus depreciation lets you deduct half of the equipment’s cost up front and the rest over the equipment’s useful life.
Can small businesses write off the purchase of used equipment?
Yes, used equipment is eligible for business write offs.
Are equipment lease payments tax deductible?
Yes, equipment lease payments are tax deductible as ordinary bYes, equipment lease payments are tax deductible as ordinary business expenses.usiness expenses.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

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