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Invest Smarter With Section 179 and Save Big on Equipment

Nov. 8 2024 Buying Guide By Quality Equipment Sales and Service, Inc.

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Section 179 is important for businesses, especially as the end of the year approaches. This code can benefit business owners in many ways. As an equipment dealer, we want to help our customers make informed purchase decisions. Section 179 of the IRS tax code offers a valuable opportunity for businesses to invest in new equipment while enjoying significant tax benefits. 

Here's what you need to know:

What is Section 179?

Section 179 is an IRS Tax Code for businesses that allows them to immediately deduct the cost of select tangible business assets in the year they are purchased rather than using standard depreciation, which takes place over a long period of time. 

What Qualifies for 179?

Tangible business expenses that are used for business needs more than 50% of the time and used in the year they are purchased to qualify for Section 179 deductions. 

Some of these include:

  • Machinery (i.e. construction, agricultural, material handling, etc.) - Both New & Used
  • Vehicles (i.e. trucks, vans, etc.)
  • Office furniture (i.e. desks, chairs, etc.)
  • Computers, software, or other technology
  • Property improvements (i.e. renovations, signage, etc.)

Be sure to consult with a tax advisor to ensure purchases qualify, however, most tangible business equipment will fall under Section 179.

Using Section 179 Rather Than Standard Depreciation

It is most beneficial for a company to use Section 179 if:

  • They want a large deduction to reduce taxable income
  • They want immediate tax deductions and simplified accounting
  • They want to increase flexibility for allocation among assets. 

Section 179 Limitations

  • Deduction Limit: $1,220,000
  • Spending Cap: $3,050,000
  • Cannot be used to show a loss on an income statement
  • Must be used for business purposes over 50% of the time

Ways to Utilize Section 179

Plan Ahead 

Determine what equipment you will need to replace or add shortly. Get ahead of the order and purchase now to maximize your spend. 

Don't forget: you must be in possession of equipment and use it before the year is over - buy what you need before lead times run out.

Upgrade 

If there’s equipment you’ve been wanting to upgrade but just haven’t had the budget, now is the time! 

Don't forget: you can purchase new, used, or rental equipment.

Additional  Savings

Businesses can use Section 179 along with financing. This helps protect cash flow and reduce the impact of taxes. 

Don't forget: you can save now and later, as long as you use your new equipment before the end of the year.


Section 179 is a great benefit for those wanting to spend at the end of this year, but want to make the most of their money. Spend wisely, and get the best deal. If you have questions or want to discuss your options, reach out to us at Quality Equipment! We've got you covered. Quality is who we are. Equipment is what we do.