Section 179 - Axe Business Funding

2024 Section 179 Tax Incentives

Section 179 is a federal tax deduction that is available for small and medium sized business. Qualifying purchases include new and used equipment, vehicles, machinery, etc. To use the deduction in tax year 2024, the property must be financed and put into service by end-of-day on December 31, 2024

To capture these tax savings, qualifying property must be placed in service before December 31, 2024. Simply choose your business equipment and Axe Business Funding will design payments to help you make a profitable decision.

2024 Deduction Limit Is $1,220,000

As part of the IRS tax code, Section 179 allows small and mid sized busineses to deduct the full purchase price of qualifying equipment from their 2024 taxes, if that equipment was purchased during the 2024 tax year. The deduction limit for 2024 has been increased to $1,220,000.

Bonus Depreciation: 60% For 2024

Bonus Depreciation is in addition to Section 179. Some years it isn’t applicable but in 2024 it is sixty percent. What that means is that equipment costing more than $1,220,000 can still get a partial deduction.

2024 Spending Cap On Equipment Purchases is $3,050,000

Spend up to $3,050,000 on equipment. Beyond $3,050,000 the Section 179 Deduction starts to drop — dollar for dollar. This cap makes Section 179 a “small/medium business tax incentive”.

(FYI: larger businesses that spend more than $3.7 million on equipment won’t get the tax break.)

Section 179 Qualified Financing

Section 179 and Bonus Depreciation are available for all leases and financing done for equipment, software, building improvements, computers, office furniture/equipment, etc.

Contact an Axe Business Funding Professional today to discuss your needs and how we can help you meet your goals prior to the December 31st deadline.

Qualifying Property & Equipment

New or Used Equipment, Off-the-Shelf Software, Vehicle for Business Use, Computers, Machinery, Office Furniture, Office Equipment, Other Tangible Goods. Most improvements to non-residential building interiors put in service after December 31st, 2017. Other improvements to non-residential buildings such as: HVAC, roofing, security systems, alarms and fire suppression systems. Property must be used more than 50% of the time by the business to qualify for the deduction. Note: new laws allow 100 percent depreciation to be applied to qualified film, television and live theatrical productions.

Note: Some restrictions apply, speak to your tax advisor for details..

Frequently Asked Questions

Section 179 Tax Incentives

Why was Section 179 created?

Section 179 was created as part of a government stimulus act to encourage small businesses to invest in their growth by providing accelerated depreciation and tax deductions on qualifying business purchases.

What is Bonus Depreciation?

Bonus depreciation allows qualifying businesses that spend more than the Section 179 limit to depreciate up to 100% on the remaining purchase amount. Bonus depreciation is very useful to companies that spend more than the allowed $2.59 million in a tax year. After Section 179 deductions are taken by a small business, bonus depreciation may be applied to further accelerate depreciation.

How do I take advantage of the Section 179 Deduction?

If your company and the assets qualify, fill out applicable parts of IRS Form 4562 and include it with your tax filing.To elect the Section 179 tax deduction, qualifying assets must be purchased and put into service during the tax year for which you are electing the deduction.

What is the 2024 Annual Deduction Limit?

For 2020, the maximum amount you may elect to deduct is $1,220,000 on qualifying property purchased and placed into service during the 2024 tax year. If your purchases exceed $2.59 million, the deduction amount will be reduced dollar for dollar equal to the amount over $2.59 million.

What types of purchases qualify for Section 179?

Purchases of business equipment, heavy equipment, office furniture, computers, software and technology as well as many other business assets qualify for Section 179

Here’s How To Get Started

We are here to help you come up with the best finance solution to meet your businesses needs. The process is simple and we will walk you through it step by step.