Purchase Drone Surveying Equipment Before 2023 Ends and Get a Big Deduction on Your 2023 Taxes!
If you're in the market for drone LiDAR equipment and advanced processing software to enhance your surveying capabilities, the 2023 Section 179 tax provision offers a unique opportunity. Section 179 allows for businesses to enjoy substantial deductions on qualifying equipment and software purchases, making it the ideal time to invest in the latest drone surveying technology. Before the year ends, now is an excellent opportunity to add drone surveying equipment and processing software from GeoCue and Microdrones and reduce your 2023 taxes.
Understanding Section 179 Deduction
The Section 179 Deduction allows businesses to deduct the full purchase price of qualifying equipment acquired or financed during the tax year. In 2023, the deduction limit has increased to a generous $1,160,000, up from $1,080,000 in 2022. This significant bump of $80,000 provides businesses with more room for deductions, allowing for substantial savings.
This deduction isn't limited to new equipment; it also applies to used equipment and off-the-shelf software. Most businesses that purchase, finance, or lease new or used business equipment during tax year 2023 should qualify for the Section 179 Deduction, provided their spending stays below $4,050,000. Qualifying equipment includes tangible goods used by American businesses and off-the-shelf software.
Whether it’s the EasyOne from Microdrones, TrueView 3D Imaging Systems from GeoCue, or LP360 LiDAR & photogrammetry 3D point cloud software, you still have time to benefit from Section 179 in 2023.
Spending Cap for Equipment Purchases
For added flexibility and benefits, the 2023 Section 179 Deduction comes with a spending cap of $4,050,000. This cap represents the maximum amount you can invest in equipment before the Section 179 Deduction starts to reduce on a dollar-for-dollar basis. This spending cap caters to small and medium-sized businesses.
One of the key distinctions between Section 179 and Bonus Depreciation is that both new and used equipment qualify for the Section 179 Deduction, while Bonus Depreciation traditionally applied to new equipment only. However, in 2023, used equipment is also eligible for bonus depreciation. Bonus Depreciation typically comes into play once the Section 179 Spending Cap is reached. This means that, even after you reach the spending cap, you can still maximize your deductions with bonus depreciation.
The Timing Matters
It's also important to consider the timing of your equipment purchases to fully benefit from the 2023 Section 179 Deduction. Equipment must be bought and put into service by midnight on December 31st, 2023. So, if you're planning to invest in drone LiDAR surveying equipment, ensure you make your purchases in time to meet this deadline.
So, Don’t Wait
The 2023 Section 179 Deduction offers businesses a remarkable opportunity to invest in drone LiDAR surveying equipment and software, from Microdrones and GeoCue, while enjoying significant tax savings. With an increased deduction limit, a generous spending cap, and bonus depreciation, this tax provision is a genuine small and medium-sized business incentive. To make the most of this deduction, ensure your equipment is purchased and put into service by December 31, 2023.
- We are not tax advisors and cannot opine on whether tax authorities will accept the tax break
- Before they purchase equipment with the intent of availing of the tax break, potential customers need to consult with their own tax advisors and make a determination whether they can elect for the tax break
- Neither Microdrones nor GeoCue can be held liable for any failure of a purchaser of equipment to avail of the tax break
These disclaimers highlight the importance of seeking expert guidance and ensuring compliance with tax regulations. While the tax savings under Section 179 can be significant, it's always wise to consult with a tax professional who can provide tailored advice based on your unique financial situation.
Don't miss out on this chance to boost your surveying capabilities and save big on your 2023 taxes. Reach out to your tax advisor to discuss your eligibility for the Section 179 Deduction and start planning your drone LiDAR equipment and software acquisitions today.
Act now, maximize your savings, and schedule a time to meet with one of our professionals.