Section 179

ATTENTION Savvy business owners and/or their accountants…

If your business has had a successful year, now is the perfect time to consider expanding your equipment inventory. Whether you're in need of a new construction vehicle, a reliable tractor, or even pre-owned machinery, taking advantage of available tax incentives can help you further grow your business. At Abele, our knowledgeable and dedicated sales staff is ready to assist in organizing your Section 179 purchase before 12/31/23. Reach out to your accountant, and then give us a call to learn more about how we can support your goals. We are committed to helping you build your business and maximize your financial potential! To break it down into more simple terms Your business can choose to deduct the costs of certain property in the same year it is used. This is called a Section 179 deduction and you can deduct up to $1,160,000 in 2023.

Another option is to deduct 80% of the cost for certain assets in their first year. Most items that are not real estate qualify for this break.

If both options are available, you should usually use the one with no limitations - bonus depreciation. Sometimes though it's better to use Section 179 expensing because it allows you to control how much gets deducted each year and doesn't cause any problems with taxes.

Which is right for you?  

When both 80% first-year bonus depreciation and the Section 179 deduction privilege are available for the same asset, you generally should claim bonus depreciation, because there are no limitations on that break. However, in some situations, Section 179 expensing can be advantageous. For example, it can be used to fine-tune annual deductions, doesn’t cause uniform capitalization (UNICAP) problems, and covers certain improvements to nonresidential real property that aren’t eligible for bonus depreciation. The availability of the two deductions provides greater flexibility than just bonus depreciation alone.

Weigh your options  

A tax professional can discuss whether bonus depreciation, Section 179 expensing, regular MACRS depreciation or a combination of these methods makes the most sense for your business. There’s no right answer for everyone, but the current tax law provides a lot of flexibility in deducting purchases of new and used equipment.

We Can Help  

If your business had a strong year this year,a new piece of construction equipment or a new piece of pre-owned equipment can make good use of the tax incentives available and help you continue to grow your business. Abele will put in the time and effort today to help organize your Section 179 purchase before 12/31/23. See your tax advisor then come see us to learn more about what we can do to help you. We look forward to helping you build your business and keep your money working for you!

**information provided in this document is for promotional purposes only. Abele Tractor and its owners, agents, employees, affiliates, suppliers, and partners are not tax advisors. This is not intended to offer any tax advice. Please consult with qualified tax professionals concerning your specific situation.**