Section 179 Tax Deduction

Speak with your tax accountant
or financial advisor to determine
if your business qualifies.

Don’t miss out on this 2024 tax deduction.

What you should know

Businesses that acquire equipment before December 31, 2024 may benefit.

Pursuant to Section 179 businesses may be able to deduct from their gross income the full purchase price of qualifying equipment bought or financed during the tax year, reducing overall tax liability.

Section 179 tax deduction can be extremely profitable for a business, allowing owners to invest in equipment, vehicles, and software while retaining more tax dollars.

According to Section 179, businesses can expense up to $1,220,000 of qualified equipment acquired and placed into service in 2024, provided that the total purchases of that year do not exceed $3,050,000. In addition, businesses can take advantage of a 60% bonus depreciation on both new and used equipment for the entirety of 2024.

Qualifying equipment includes both new and used property acquired by purchase or capital lease.

Equipment including tangible personal property used in business, computers, off-the-shelf and custom-built software, office furniture, office equipment, business-use vehicles, property attached to a building that is not a component of the building (large manufacturing equipment), and even certain improvements to non-residential buildings including fire-suppression systems, alarms and security systems, HVAC and roofing may qualify.

Businesses wanting to take advantage of this tax benefit need to act fast and consult with their tax advisor before acquiring equipment to take advantage of this benefit.

It’s important to consult with a tax professional or financial advisor to fully understand how Section 179 Qualified Financing can work best for your specific business situation. The scheduled deduction is good only for qualifying equipment purchased or financed and put into use by December 31, 2024.

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