The Section 179 deduction for 2023 is $1,160,000, which is an increase from $1,080,000 in 2022. All U.S. companies can deduct the full purchase price of all qualified equipment purchases, up to the limit of $1,160,000. In addition, the “total equipment purchase” limit has been raised to $2,890,000, up from $2.7 million in 2022. The deduction can include both new and used qualified equipment.
Businesses also can take advantage of 80 percent bonus depreciation – a decrease from last year’s 100 percent – on both new and used equipment for the entirety of 2023.
Remember to keep supply-chain issues and delivery times in mind when making your Section 179 purchases for 2023, as equipment must be purchased and placed into service by midnight of December 31, 2023.
