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Section 179 Information
What is Section 179?
Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction.
The equipment purchased, financed, or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken. (The equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken). Basically, it’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Note: Due to current supply chain Issues there are no plans to waive the “put into service” requirement. So your equipment must be purchased and put into service by midnight December 31st.
Section 179 at a Glance
- 2024 tax year deduction limit = $1,220,000 for new and used equipment
- 2024 tax year spending cap on equipment purchases = $3,050,000
- Bonus depreciation: 60% available for 2024 tax year
What Equipment is Covered?
- Business equipment of all types - equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify. (new, preowned, or refurbished equipment accepted)
- Vehicles designed for commercial use - vehicles with 6,000+ pounds GVW, are limited to a $25,000 deduction
- Off-the-shelf software - readily available for purchase by the general public with a non-exclusive license and not substantially modified. Websites do not qualify.
It’s Usage That Provides You Benefit, Not Ownership
Why not get the best of both worlds. When you finance your equipment, you’ll enjoy daily usage of your equipment with affordable monthly payments. Best of all you have the comfort of knowing that you’ll own the equipment once all is said and done.
Even More Benefits
The Section 179 of the IRS Tax Code allows you to invest in your equipment today, while claiming the entire purchase on this year’s books. This allows you to keep money in your business.
Contact us to learn more or apply now for financing and let’s work on something great, together.
For more details on limits and qualifying equipment please visit the link to the current Fact Sheet from IRS about new rules and limitations under that Tax Cuts & Jobs Act. Use Form 4562 to claim your Section 179 deduction.
Remember Tri-Lease has a large vendor network to offer equipment leasing options for any type of business. Contact us or Apply Now to get something started today!
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