Unlock Savings with Section 179

Discover How Section 179 Can Save You Money?

Running a business that depends on material handling equipment and machinery can be expensive. But did you know there’s a way to save big on these costs? If you’re not already using Section 179 of the Internal Revenue Code, you could be missing out on significant savings. This provision allows businesses to deduct the full cost of certain equipment, like forklifts, sweepers, and scrubbers, in the year they’re purchased instead of spreading the cost over several years. This can lower your taxable income and reduce your tax bill for the year.?

Qualifying for Section 179:?

1. Deduction Limits: For 2024, the IRS allows a deduction of up to $1.22 million for qualifying purchases, whether new or used, as long as they’re bought or leased and put into service by year-end. The maximum cost of goods is $3.05 million. These limits can change annually, so it’s important to stay updated and consult with tax professionals.?
2. Eligible Property: The property must be tangible, depreciable, and used for business purposes more than 50% of the time. It also needs to be placed into service during the tax year you’re claiming the deduction.?
3. Leasing and Financing: Equipment procured through lease or financing can also qualify, provided it meets the necessary criteria.?

Considerations and Best Practices:?

This tax benefit isn’t automatic. To claim it, you need to fill out IRS Form 4562. When filing your taxes, include this form and select the Section 179 deduction, listing the property, its price, and the amount you’re deducting.?

Bonus Depreciation: In addition to Section 179, there’s Bonus Depreciation, which allows for an 80% deduction of the cost of new equipment beyond the Section 179 limits. This can provide even more tax relief for businesses with significant capital expenditures.?

Act Now – Deadline Approaching!?

The deadline for the Section 179 deduction is December 31, 2024. Make sure all qualifying equipment is purchased or financed, delivered, and in service by this date. Always consult with a qualified tax professional to ensure you meet all requirements and understand any limitations.?

Contact your Shoppa’s sales representative for availability today or call 866-506-2200 to request a quote. You can also find a free Section 179 calculator online to see how much you could save.