Section 179 Tax Deduction Benefits

The Section 179 Deduction can be a valuable tax break for businesses that purchase new or used equipment. By utilizing Section 179 businesses will be able to deduct the full cost of business essential equipment or software purchased/financed in 2024 up to $1,220,000*. Additional benefits include:

• 2024 bonus depreciation is 60% – both the Section 179 deduction and bonus depreciation can be used simultaneously, but the Section 179 deduction must be applied first. Any amount exceeding the Section 179 deduction limit can be taken as bonus depreciation.
• 2024 total equipment purchase limit is $3,050,000 – meaning businesses can deduct the full cost of up to $3,050,000 of qualifying purchases in 2024, even if they exceed the Section 179 deduction limit. The excess amount will not be eligible for bonus depreciation.
• Section 179 applies to both new and used equipment and software.

*Please consult your tax consultant/accountant to fully understand the benefits and implications of Section 179.