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Maximize Your Tax Savings Before Year-End: How Buying Equipment Can Benefit Your Business Under Section 179
As the year draws to a close, many business owners are looking for ways to reduce their taxable income and increase cash flow. One of the best strategies to achieve this is by taking advantage of Section 179 of the IRS tax code. If you're in the market for new farm equipment, construction machinery, or other types of business equipment, buying before the end of the year can offer significant tax savings and help your business stay competitive in the year ahead.
At Dragoons Farm Equipment, we want to make sure you're not only getting the best equipment for your needs but also maximizing your financial benefits. Here’s how purchasing equipment before December 31 can help you leverage Section 179 and save money on your taxes.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year, rather than depreciating it over several years. This deduction is designed to encourage businesses to invest in themselves and grow.
For the 2023 tax year, the deduction limit for Section 179 is $1,160,000. That means you can write off up to $1.16 million in new or used equipment in the same year you purchase it—an incredibly valuable opportunity for businesses looking to make a major investment in their operations.
Not all purchases are eligible for Section 179 deductions, so it’s important to know what qualifies. Fortunately, most tangible business equipment used for business purposes, including the following types of equipment, typically qualify for Section 179:
It’s important to verify with your tax advisor that the equipment you’re purchasing qualifies for the deduction, as there are specific rules and limits depending on the type of property and its use.
To fully benefit from the Section 179 deduction, your equipment purchase must be made and put into service by December 31 of the current tax year. This means that if you're considering upgrading your equipment or adding new machinery, you need to act quickly.
At Dragoons Farm Equipment, we offer a wide range of new and used farm machinery and construction equipment designed to meet your needs. Our team is here to help guide you through the purchasing process and ensure that you are making an investment that will benefit your business for years to come.
Purchasing equipment before the end of the year can significantly benefit your business—both operationally and financially. With Section 179, you can deduct the full cost of qualifying equipment from your taxable income, potentially saving your business thousands of dollars in taxes.
If you’re looking for quality farm equipment or machinery to take advantage of these tax savings, Dragoons Farm Equipment has a wide selection of reliable, durable equipment to meet your needs. Don’t wait—shop today to ensure you’re ready for 2024 with the tools and savings you need to succeed!
To browse our inventory, visit Dragoons Farm Equipment.
Disclaimer: Always consult a tax advisor to ensure you meet all criteria for Section 179 deductions. Tax laws and regulations can change, and your accountant will be able to guide you on how to best leverage these incentives for your business.
Ryan@Dragoonsfarmequipment.com
Since 1953 Dragoon's Farm Equipment has supplied parts and whole goods in the farm equipment, lawn equipment, and garden equipment to farmers and homeowners. We maintain an expert service shop for every line we sell. We support the equipment we sell with factory-trained service technicians and a robust parts department. We are committed to offer you quality products at competitive prices with the best financing option. We proudly serve New York and Vermont as a locally owned and operated business.
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