Section 179 Tax Deduction | Commercial Vehicles Delaware
The 2024 Section 179 Deduction Limit for Businesses increased this year to $1,220,000
Did you know Section 179 lets businesses write off the full purchase price of eligible equipment such as commercial and fleet work trucks and vans? Take advantage of immediate expense deduction, providing significant tax savings for your business. Encouragement of growth and scalability through the acquisition of new equipment. Increased financial flexibility by improving your business' bottom line.
Section 179 at a Glance for 2024
This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2024, the equipment must be financed or purchased and put into service between January 1, 2024 and the end of the day on December 31, 2024.
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than $4,270,000 on equipment won't get the deduction.)
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
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The Section 179 deduction for 2024 is $1,220,000, which is an increase of $60,000 from 2023's limit. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,220,000. In addition, the "total equipment purchase" limit has been raised to $3,050,000 (up from $2.89 million in 2023). The deduction can include both new and used equipment acquired and put into service between 1/1/2024 and 12/31/2024. In addition to these limits, businesses can also take advantage of a 60% bonus depreciation on both new and used equipment for the entirety of 2024. Not all models are listed here. For exact details and more specific information please refer to www.section179.org.
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