The end of the year will be here before we know it. Between Black Friday, Cyber Monday and holiday promotions that's a lot of pressure. Conquer Q4 with confidence (and serious savings).

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Maybe taxes aren’t top of mind for you yet, but Section 179 certainly should be – especially if you’re thinking about purchasing a piece of equipment* any time soon. Section 179 offers a great opportunity for small and medium-sized business owners to reduce their taxes. The tax code allows what is called first-year expensing. Under Section 179, the IRS allows taxpayers to deduct the full amount of a business expense in the year the property is placed into service. So, instead of writing off qualifying equipment a little at a time through depreciation, Section 179 allows you to write off the entire purchase price the same year the equipment is bought, thereby reducing your current year tax liability. This can add up to BIG tax savings.

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Tax law changes often. For the 2024 tax year, Section 179 is limited to a maximum deduction of $1,220,000. Once this spending cap is reached, taxpayers may be eligible for a bonus depreciation of 100%. To get the most out of Section 179, the total equipment purchase for 2024 must not exceed $3,050,000.

To qualify for a Section 179 deduction, your business must first and foremost be profitable. In addition, you must elect for the deduction — it’s not automatic. Finally, any qualifying equipment you purchase must be put into service by the end of the calendar year. That doesn’t give you a lot of time, especially given the continued unpredictability of supply chains.

*Please consult a tax professional for advice on your unique situation before making any purchases toward Section 179. While we are experts in financing, we do not give legal or tax advice.