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Save with Section 179 and Bonus Depreciation

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Section 179 deductions are changing and benefits will decrease on January 1, 2024

As we move towards year-end, it’s time to start thinking about taxes and tax liability once again.

If you are in the market to renew or expand your fleet, one easy way to save is to purchase gear and place it into service before year-end. This will allow you to depreciate most of the equipment cost using Bonus Depreciation and/​or Section 179. 

Taking advantage of these tax incentives could reduce your overall tax liability while improving your company’s financial outlook.



WHAT DOES PLACE INTO SERVICE MEAN?

“Place into service” means the equipment is ready and available in your lot or jobsite for its intended function. If this condition is not met in 2023, the deduction will have to wait until 2024.

BONUS DEPRECIATION:

  • 80% Expensing
  • State Rules Vary
  • Used/​New
  • No Limitation
  • You still have the ability to expense 80% of used gear. This is huge for our industry. However, the percentage changes to just 60% on January 1, 2024. Take advantage of it while you can.

SECTION 179:

  • 100% Expensing
  • State Rules Vary
  • Used/​New
  • Limitation

Limits of Section 179:

Section 179 does come with limits – there are caps to the total amount written off ($1,160,000) and limits to the total amount of the equipment purchased ($2,890,000). The deduction begins to phase out ratably after $2,890,000 is spent by a given business (thus, the entire deduction goes away once $4,050,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

DISCLAIMER

This stuff can be complicated, so check out this handy calculator to calculate your potential savings. Bigge also always recommends consulting with a tax professional to verify actual savings potential. Take advantage of the Section 179 deduction and this last chance at Bonus Depreciation for significant savings.

For more information visit: sec​tion179​.org

Bigge Crane and Rigging Co. and its affiliates do not provide tax advice. This material has been provided for informational purposes only. You should consult with your tax professional before buying property with the intent to take a Section 179 deduction.