Section 179 Deductions & Supply Chain Shortages in 2021 — What This Means for You

What is the Section 179 Tax Deduction?

How Does Section 179 Work?

What is the Maximum Deduction Limit?

  • 2021 deduction limit: $1,050,000
  • 2021 spending cap: $2,620,000
  • Bonus depreciation (on both new and used equipment): 100%

Who Qualifies for Section 179?

Section 179’s “More Than 50 Percent Business-Use” Requirement

The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.

Do HVAC Systems Qualify for Section 179 Deductions?

Supply Chain Shortages: How they Affect Section 179

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