TAX SAVINGS
TAX SAVINGS
Section 179 is a tax incentive that allows small businesses to write off the entire purchase price of qualifying equipment in the year it was purchased. The benefits of Section 179 are dramatic for small businesses that buy or lease equipment.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. The 2024 Section 179 Deduction Limit for Businesses is $1,220,000. This means: U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,220,000. In addition, the “total equipment purchase” limit has been raised to $3,050,000 (up from $2.89 million in 2023).
The deduction can include both new and used equipment acquired and put into service between 1/1/2024 and 12/31/2024. In addition to these limits, businesses can also take advantage of a 60% bonus depreciation on both new and used equipment for the entirety of 2024.
Let ASCO save you time and money on your next equipment purchase or lease.
*Under the Tax Cuts and Jobs Act many equipment purchases qualify for tax advantages. Contact your tax adviser to discuss your options as they relate to Section 179 expenses and bonus depreciation. Restriction may apply. ASCO does not provide tax advice and this should not be considered tax or legal advice.