The Section 179 deduction for 2024 is up to $1,220,000. Total equipment purchase limit has been raised to $3,050,000 in 2024. 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. Restrictions apply for qualifications. See Section179.org for full details. The information provided is for general informational purposes only and should not be considered as professional tax advice. Always consult with your tax advisor or financial expert for personalized guidance and to ensure compliance with applicable tax laws.
DEDUCT UP TO 100% OF PURCHASE PRICE FOR ELIGIBLE VEHICLES
The Section 179 deduction is an effective tool to maximize your company’s financial flexibility. A part of the IRS tax code, Section 179 allows businesses to deduct the full purchase price of qualifying equipment bought or financed during the tax year. This significant tax incentive is designed to encourage businesses to invest in themselves by purchasing the equipment they need to grow, while also reducing their tax liability. Section 179 can be extremely profitable for your business, allowing you to invest in equipment, vehicles, and software while also keeping more of your hard-earned money. The Section 179 deduction for 2024 is $1,220,000, which is an increase of $60,000 from 2023’s limit. 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.
TAKE ADVANTAGE TODAY
There has never been a better time to buy a new vehicle for your business! The qualifying vehicle must be purchased and placed into service between January 1, 2024 and December 31, 2024.
OTHER CONDITIONS
The vehicle must be used at least 50% for business in order for it to follow under the Section 179 deduction. Use the Section 179 tax deduction calculator to multiply the cost of the business vehicle you purchase by the percentage of business-use to arrive at the monetary amount.
Speak to your tax professional today to see how Section 179 can help you. For more information visit https://www.section179.org/ or contact one of our team members.
The tax incentives are available for depreciable tangible property that is acquired by purchase for use in the active conduct of a trade or business. Additional limitation based on purchases. Certain vehicles, models, and restrictions apply. Each individual’s tax situation is unique; therefore, please consult your tax professional to confirm vehicle depreciation, deduction, and tax benefits. For more details, visit irs.gov or https://www.section179.org/.
