2022 flew by in the way that years always seem to do. Here at Tent and Table, it seems like January was just yesterday. And don’t get us started on how fast summer came and went.
But the end of the year doesn’t have to be sad. There’s an IRS tax code that might cheer you up and make the path to 2023 a little bit brighter.
This IRS tax code is something that we talk about often. But can you blame us? Every event and party rental operator should be aware of this code, because it can be hugely helpful to your business.
Section 179 - What Is It?
With the help of Section 179, you can write off all of your equipment purchases at one time instead of waiting for them to trickle in through depreciation. You can also write off the full purchase price of your equipment from your gross income, which allows you to save a whole lot of money when you file your 2022 taxes.
You’d be surprised at how much of your equipment qualifies for Section 179 deductions. You can expect to see big items like commercial inflatables, party tents, folding tables, and chairs on that list, with a deduction limit of $1,080,000 and an equipment spending cap of $2,700,000, you can use these deductions for pretty much everything business-related you bought in 2022.
Do My Purchases Qualify?
Any equipment purchased at any time in 2022 qualifies, between January 1st and December 31st. If you went out right now and bought a $3,200 inflatable water slide, a $2,500 bounce house with a slide combo, and a $2,300 frame tent, that’s $8,000 that you could subtract from your taxable gross income for the year.
As long as your equipment qualifies (don’t forget to check the list on this page), and you bought it in the year 2022, you qualify for the deduction.
Get Expert Advice
At Tent and Table, we may know our way around party equipment, but we are not tax experts - that means that we can’t explain this in a way that a tax professional could! So, to get the best answers possible, we recommend gathering your receipts and taking them to your accountant to talk about Section 179 criteria and deductions. Don’t miss out on these savings!