Take advantage of Section 179 and discover what you can save with your year-end purchases.
Congress passed the Tax Cuts and Jobs Act in December 2017, expanding the Section 179 deduction limit for new and used equipment as well as off-the-shelf software. Deduction limit of $1,220,000 on the cost of new and used capital equipment purchased with an investment cap of $3,050,000 to get the maximum deduction.
Small- to medium-sized businesses can also take advantage of bonus depreciation of 60% on both new and used equipment for the entirety of 2024. Bonus depreciation can be combined with Section 179 deduction for additional savings.
Bonus depreciation expires December 31, 2026, regardless of fiscal year-end.
What purchases qualify?
New and used equipment and off-the-shelf software.
When do I need to purchase to qualify for this year?
Any time during the year if purchased and put into service by December 31, 2024.
How much can I deduct?
$1,220,000 is the maximum deduction.
Is there a limit to the total amount of the equipment purchase?
The deduction begins to phase out on a dollar-for-dollar basis after $3,050,000 is spent by a given business and goes away once $4,270,000 in purchases is reached.
Important
The information on this site is provided as customer service by RDO Equipment Co. and John Deere Financial. However, it should not be construed as tax advice. We strongly recommend that you consult with your tax advisor regarding how these tax-saving opportunities apply in your situation.