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Section 179 Tax Deductions for New and Used AGCO Equipment
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.
This tax deduction applies to equipment that is put into service at the years start (January 1st) through the years end (December 31st). 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.
How To Use Section 179 Tax Deduction
Quick facts about Section 179:
- The maximum amount that can be deducted in the tax year is $1,250,000.
- Once your company reaches the spending cap of $3,220,000, the deduction available to your company will begin to be reduced on a dollar-for-dollar basis.
- 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.”
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.
