NEWS AND NOTEWORTHY CONTENT
Section 179 Tax Deductions
Section 179 at a Glance for 2024
2024 Deduction Limit = $1,220,000
To take the deduction for the tax year 2024, the equipment must be financed or purchased and put into service between January 1, 2024, and the end of the day on December 31, 2024.
2024 Spending Cap on equipment purchases = $3,050,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis.
Bonus Depreciation: 60% for 2024
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
Example Calculation
| Truck Purchases | $1,300,000 |
| First Year Write-Off $1,220,000 = 2024 max |
$1,220,000 |
| 60% Bonus First Year Depreciation Phased Reduction to 60% via ‘Tax Cuts & Job Act” |
$48,000 |
| Normal First Year Deduction (Bonus Depreciation Taken Instead) |
$0 |
| Tax Savings (Cash You Keep) |
$443,800 |
| Purchase Cost After Tax | $856,200 |
Information provided by section179.org
Calculate your deductions by visiting the Section 179 Deduction Calculator
