As the days of 2024 wind down, it’s worth providing a reminder that there is still time to take advantage of the Section 179 tax deduction.
The deduction applies to any equipment — new or used — purchased and put into service between Jan. 1 and Dec. 31 of this year. There is no set amount of time the equipment has to be used in 2024. It only has to officially be put into service.
The Section 179 deduction for 2024 is $1.22 million, an increase of $60,000 from the 2023 limit and the highest in its history. You can deduct the full purchase price of all qualified equipment up to that limit. The deduction is targeted at small businesses so there is a limit on the total purchase amount of eligible equipment, but that too has increased for 2024. That total is $3.05 million, up from $2.89 million, after which the deduction starts phasing out. The deduction phases out dollar for dollar up to $4.27 million.
Additionally, businesses can apply a bonus depreciation of 60% on certain equipment placed into service in 2024. This is down from 80% in 2023 and will continue to decline by 20% each year until it ends Jan. 1, 2027.
For more information, visit www.section179.org.
