Section 179 is something every event professional should know about in the event industry. Instead of letting rental equipment depreciate, Section 179 allows all equipment purchases to be written off your taxes at once. What does this mean for you as an event operator? It means saving money when filing your 2021 taxes. And who doesn’t want that extra cash to go back into their business?
What Rental Equipment Qualifies for Section 179?
So what equipment qualifies for Section 179 deductions? Big-ticket items such as commercial inflatables, party tents, and folding tables and chairs. The deduction limit is $1,050,000, which is up $10,000 from last year, and the equipment spending cap is $2.62 million, up from $2.5 million in 2020. Most rental professionals can use deductions on almost all items purchased this past year.
To clarify, we’re not tax experts, and we encourage you to reach out to a professional or do your own research. Here’s a link where you can learn about Section 179 deductions in more detail.
What Purchases Qualify for Section 179?
Any equipment purchases made between January 1, 2021, and December 31, 2021 qualify for these Section 179 deductions. Did you buy equipment other than inflatables and tents? Those count as well , as long as it qualifies for the deductions. Let’s say right after you finish reading this blog, you went off and bought some equipment for your event and party rental company. Perhaps a $1,700 15' x 15' frame tent, a $3,300 obstacle course, and a $1,500 heater. That’s $6,500 worth of equipment. That’s $6,500 you can take out of your taxable gross income for the year, as well.
We want to stress again that we at Tent and Table are not tax experts. We are just experienced in the party and event rental industry long enough to know that there is a tax benefit to exploring what Section 179 can do for your business. Gather up all your receipts from 2021, bring them to a tax consultant, and see how much you can save this year!