Scary Good Tax Savings with Section 179 

Navigating the spooky world of tax laws may feel haunting, but one provision shines through for business owners: Section 179. This tax deduction can provide substantial savings, enhancing your company’s financial health and positioning you for growth in a competitive market. 

Section 179 is an IRS tax provision that permits businesses to deduct the purchase price of qualifying equipment in the year it is acquired and used. This provision is invaluable for business owners, offering a range of significant benefits: 

• Tax Savings: By deducting the full cost of qualifying equipment, you can significantly lower your taxable income, translating into valuable savings when tax season comes around. 

• Cash Flow: Instead of slowly depreciating the cost over several years, section 179 allows for immediate deductions, freeing up cash for reinvestment and expansion opportunities. 
  
• Staying Competitive: This incentive promotes investment in essential tools and equipment, enabling your business to remain relevant and thrive in the industry. 

To qualify for the Section 179 deduction, equipment must be tangible, depreciable, and used for business purposes. This encompasses a wide range of items, including aerial lifts, chippers, box trucks, specialty vehicles, trailers, wreckers, loaders and more. Under this provision, you can write off the entire purchase price of qualifying equipment, with a deduction limit of $1,220,000 for 2024. Importantly, Section 179 applies to both new and used equipment, allowing you to benefit from the deduction even when opting for high-quality, cost-effective used items. This flexibility makes it easier for businesses to invest in the tools they need to grow their company. 

179 provides 100% deductions up to a limit, but also allows for bonus depreciation for businesses with qualifying revenue and assets.  For 2024 bonus depreciation allowance is up to 60%.  To find out how bonus depreciation relates to your business talk to your tax professional.  

At AP Equipment Financing, we understand that securing funds for outright purchases can be a challenging task for many businesses. Fortunately, AP offers financing solutions that allow you and your business  to fully benefit from the Section 179 deduction, even when using loans or leases. By financing with AP, you can preserve your working capital while upgrading your equipment through manageable monthly payments.  

Click here to estimate your Section 179 tax savings using our calculator! 

If you are ready to explore financing options for your equipment, AP Equipment Financing is here to assist you! 

For a full understanding of Section 179 and how the tax benefits apply to your business, please consult with your tax professional. 

About AP Equipment Financing: 
Founded in 1998 and based in Bend, Oregon, AP Equipment Financing is a subsidiary of Tokyo Century (USA) Inc., the U.S. subsidiary of Tokyo Century Corporation. Tokyo Century Corporation, headquartered in Tokyo, has 7,800 employees, and offers specialty leasing and other high value-added financial services in more than 30 countries.

AP Equipment Financing is renowned for its reliability, consistently delivering innovative financial services and comprehensive expertise to ensure customer satisfaction. The affiliation with Tokyo Century Corporation grants AP the financial strength and resources of a large organization, while enabling them to uphold the swift and personalized service characteristic of an agile independent enterprise.