Section 179 At A Glance
(Updated for Tax Year 2019)
The "Tax Cuts and Jobs Act" was passed by both the House and Senate and signed into law on Dec. 22, 2017. This bill expanded the Section 179 deduction limit, which is good on new and used equipment, as well as off-the-shelf software. In addition, the bill expanded bonus depreciation to 100% and now includes used equipment.
Two Key Tax Benefits to Know About Section 179
1. Section 179 provides the allowable deduction limit of $1,000,000 on the cost of new and used capital equipment purchased with an investment cap of $2,500,000. Section 179 increase is permanent and will be indexed for inflation in future years.
2. Bonus depreciation can be combined with Section 179 deduction for additional savings. Bonus depreciation enables you to take additional depreciation on new and used (new to you) capital equipment purchases.
Bonus depreciation expires on December 31, 2026, regardless of your fiscal year-end.
With or without Section 179 and bonus depreciation, your tax savings over the depreciable life of the equipment will be the same. However, the purpose of this tax benefit is to accelerate growth in the economy right now. The money you save in the short term can be reinvested in capital improvements, expansion projects, and more, so don't wait - buy that new equipment today.
Important
The information on this site is provided as a customer service by RDO Equipment Co. and John Deere Financial. However, it should not be construed as tax advice. We strongly recommend that you consult with your tax advisor regarding how these tax-saving opportunities apply in your situation.
Don't miss out on the 2019 benefits of Section 179.
Bonus depreciation expires December 31, 2026.
For current information on Section 179, visit Section179.org.
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Section 179 Articles
10 FAQs About Section 179 – Updated in 2018
Nov 6, 2018
Those considering a year-end purchase to apply Section 179 may have questions about the program. Here are 10 frequently asked questions – and answers ...
Two Important Updates to Bonus Depreciation
Oct 3, 2018
In the past, Section 179 has gone hand-in-hand with bonus depreciation, both valuable tax incentives. This year, changes have been made to Section 179...
* RDO Equipment Co. does not provide tax, accounting, or legal advice. The calculation example presents a potential tax scenario based on typical assumptions that may not apply to your business. Always check with your local accountant or tax attorney to verify your eligibility for any tax deductions.