Section 179 Tax Deductions for New and Used AGCO Equipment

Wouldn’t you like to get a new Fendt tractor or Hesston square baler for your farm and get a huge tax break at the same time? Well, why wouldn’t you! Through the Section 179 tax deduction, small to medium businesses can write off the FULL PURCHASE PRICE* of any equipment they purchase, finance, or lease during the tax year. The equipment simply needs to be “new to you”, which means you can take home equipment from Agri-Service that is either New or Used.

*It is recommended that you consult your tax representative or accountant for the best source of information and your business’s ability to qualify for Section 179.

*The following information has been interpreted from the official Section 179 website. Agri-Service representatives are not tax officials, so facts below should be fact checked by a tax official and not used as a source of truth.

Quick facts about Section 179:

It’s an immediate expense deduction offering significant tax savings for businesses.
Your business can focus on and is encouraged to scale and grow with the assistance of this tax deduction.
The financial flexibility of your business will be enhanced, only benefiting your bottom line.
Yes, “in many cases, the tax savings from the deduction will make your bank account larger than if you never financed the equipment in the first place.”

What is Section 179 Tax Deduction?

A Section 179 tax deduction is an IRS tax code that lets businesses deduct the full purchase price of equipment or software that is bought, financed, or leased during the tax year. The government created this tax incentive to empower businesses to invest in themselves, their growth, and upgrade their equipment to stay competitive.

Instead of depreciating the cost of your equipment over several years on your taxes, Section 179 lets you deduct the entire purchase price from your gross income in the year that the equipment was put into working service.

How Does Section 179 Work?

This tax deduction applies to equipment that is put into service at the years start (January 1^st) through the years end (December 31^st). Again, this equipment can be purchased, financed, or leased. You are not limited to strictly new equipment; as long as the equipment is “new to you”, used equipment can qualify for the deduction savings. This “new” equipment must be used more than 50% of the time for your business.

But there are some limitations and caps for businesses looking to take advantage of Section 179:

The maximum amount that can be deducted in the tax year is $1,220,000.
Once your company reaches the spending cap of $3,050,000, the deduction available to your company will begin to be reduced on a dollar-for-dollar basis.

Does Your Business Qualify for Section 179?

Most small to medium size businesses who have not reached the cap of their Section 179 tax deduction should qualify for it this tax year. We highly encourage you to speak with a tax official or your accountant for the best source of information and approval. Agri-Service is not a professional tax advisor, but we are pleased to have helped many farmers save money on new equipment with a Section 179 tax deduction.

At Agri-Service there are different ways you can get into a new piece of AGCO equipment. For a limited time, we are running offers like:

What’s Next?

If you’re ready to come finance or lease your next piece of equipment, the next step for you is to visit the nearest Agri-Service or view our inventory online. We provide valuable information about the newest makes and models of Fendt, Massey Ferguson, and Hesston equipment.

New Equipment

Used Inventory

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