VINTAGE
KING'S
As 2023 comes to a close, many engineers are considering how to continue growing their business next year. Thankfully, there's plenty you can do right now to set yourself up for success in 2024, like taking advantage of the Section 179 tax code.
Section 179 enables studio owners, producers, and engineers to deduct the price of any studio upgrades from your 2023 gross income. That means any purchases you make before the end of the year can actually save you money on your taxes.
It may seem a bit complex but don't worry. In this blog, we're breaking down everything you need to know about Section 179 to upgrade your studio and make the most out of 2024.
WHAT IS SECTION 179?
Section 179 "allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year." This means that if you purchase a piece of equipment or large package from Vintage King before December 31st, 2023, you can deduct the full purchase price (up to $1,160,000) from your gross income of this year.
WHAT IF I'M LEASING OR FINANCING MY PURCHASE?
If you're leasing or financing gear through Vintage King, you can still take advantage of Section 179. In many cases, if you are leasing or financing a purchase, you can still claim some or all of the deduction upfront. By doing so, you could end up with $0 or less out of pocket in your first year of owning your new equipment and have it up and running in your studio before any net payments are due.
ARE THERE LIMITS TO SECTION 179?
Yes, Section 179 has its limits. As mentioned previously the cap to the total amount written off is $1,160,000 for 2023. The limit to the total amount of equipment that can be purchased for 2023 is $2,890,000. After $2,890,000, the deduction "begins to phase out on a dollar-for-dollar basis." Once $4,050,000 is reached the deduction goes away altogether, as this is meant for businesses that are small to medium in size.
HOW CAN VINTAGE KING HELP?
For over 25 years, Vintage King has specialized in helping build, design, and outfit recording, mixing, and mastering studios. If you're ready to add to your studio before the end of 2023, our team of Audio Consultants are here to help and advise on gear purchases.
