Section 179 is a federal tax deduction that allows businesses to deduct the full or partial purchase price of qualifying new and used equipment purchased or financed up to $3,050,000 during the calendar year.
HOW IT WORKS
STEP ONE: PURCHASE
You purchased and placed in service a qualifying piece of equipment for your business from January 1, 2024 through December 31, 2024.
STEP TWO: DO THE MATH
Calculate the deduction using the following example formula.
$1,300,000.00
EQUIPMENT PURCHASE
DEDUCTION CALCULATION
$1,220,000.00
$48,000.00
+ $0.00
$1,268,000.00
FIRST YEAR WRITE OFF
80% BONUS FIRST YEAR DEPRECIATION
NORMAL FIRST YEAR DEPRECIATION
TOTAL FIRST YEAR DEDUCTION
CASH SAVINGS CALCULATION
$1,268,000.00
X 35%
$443,800.00
TOTAL FIRST YEAR DEDUCTION
TAX RATE
TOTAL SAVINGS
TOTAL EQUIPMENT COST AFTER TAX
(assuming a 35% fed. tax bracket)
$856,200.00
Consult with a Universal Finance representative to fast track your application to purchase equipment before the end of the year!
