Are you thinking you’ll be busier in 2021 than in 2020? If that’s the case—it may be a great time to add new construction software or new or used equipment and deduct all of it on this year’s taxes.
Call it a win-win for small-to-medium size businesses, Section 179 of the U.S. Tax Code allows businesses—including those who make their living in construction—to expense $1,040,000.
This deduction is good until the total equipment purchased for the year exceeds $2,590,000. Once your purchases exceed that number, the deduction is reduced on a dollar-for-dollar basis.