As the year draws to a close, we want to highlight a fantastic opportunity for you to enhance your equipment while benefiting from tax savings: Section 179! Carleton Equipment is committed to helping you take full advantage of this tax incentive while offering top-tier compact equipment.
Get A Quote
View Our Inventory:
What is Section 179?
Section 179 of the IRS tax code is a tool designed to ease the tax burden on businesses while promoting investment in crucial equipment and property. This provision enables companies to immediately deduct the entire purchase price of eligible equipment—including compact loaders, excavators, and other machinery—in the same year it's acquired. Rather than spreading the depreciation over multiple years, this approach can unlock substantial tax savings and free up valuable capital for your business's growth and operations.
Here’s How Section 179 Works
In previous years, businesses typically depreciated qualifying equipment purchases over time, writing off small portions annually. However, many companies prefer a more immediate financial benefit. That's where Section 179 comes in. This provision allows your business to deduct the full purchase price of eligible equipment in the current tax year. Instead of gradual depreciation, you can write off the entire cost of qualifying equipment on your 2024 tax return. This accelerated deduction applies to purchases up to $1,220,000, offering a significant potential tax advantage for your business this year.
2024 Limits
There are caps to the total amount written off ($1,220,000) and limits to the total amount of the
equipment purchased ($3,050,000). The deduction begins to phase out on a dollar-for-dollar basis after $3,050,000 is spent, so this makes it a true small- and medium-sized business deduction. In addition, the total deduction for section 179 property may not exceed the total amount of taxable income derived from the trade or business. To the extent the full deduction is not allowed in the current year, taxpayers are allowed to carry forward the excess to be deducted in future years.
Because the section 179 expense deduction is treated as a form of accelerated depreciation, recapture of those accelerated deductions may apply if the equipment is sold or disposed of in subsequent periods.