Maximize Your Tax Savings with Section 179 Before 2024 Ends

If you're considering upgrading your fleet or adding heavy equipment to your operations, now is the time to act. Section 179 allows business owners to deduct the full cost of qualifying equipment in the year it’s purchased, offering immediate tax relief. Don’t wait—purchase before the year ends to take advantage of this significant tax-saving opportunity.

Section 179: Your 2024 Tax Savings Opportunity

For 2024, the Section 179 deduction limit remains at $1,160,000, with a phase-out threshold starting at $2,890,000. This deduction applies to a wide range of equipment, but the real advantage lies in its application to heavy equipment and trucks—essential assets for businesses in construction, logistics, and related industries.

Example Scenario: Tax Savings in Action

Consider purchasing a 2022 Terramac RT9 Haul Truck, listed at $270,000. With Section 179, you can deduct the entire purchase price from your taxable income in 2024, potentially saving over $81,000 in taxes for a business in the 30% tax bracket.

Now, imagine investing in a 2023 Caterpillar D10T2 Bulldozer, listed at $2,395,000. While this price exceeds the maximum deduction limit, you can deduct $1,160,000 under Section 179 in 2024 and apply bonus depreciation to the remaining cost. This strategy could result in substantial tax savings, allowing you to reinvest in your business immediately. But remember, the equipment must be in service before December 31, 2024, to qualify.

Why Act Now?

1. The Clock is Ticking

The December 31 deadline is fast approaching. Waiting could mean losing out on immediate savings that could strengthen your bottom line and fuel your growth. Don’t miss the chance to lock in your Section 179 benefits for this year.

2. Rising Equipment Costs

Heavy equipment prices are expected to increase in 2025 due to inflation and supply chain constraints. Purchasing in 2024 not only secures your tax savings but also ensures you get the best deal on the equipment you need.

3. Maximize Bonus Depreciation

For purchases exceeding the Section 179 cap, bonus depreciation lets you deduct additional costs. Combining Section 179 and bonus depreciation this year ensures you get the most out of your tax strategy.

Financing + Section 179: A Winning Combo

Even if you finance your purchase, you can still claim the full deduction. For example, financing a $270,000 haul truck allows you to spread payments over time while deducting the entire cost in 2024. This approach helps you maintain cash flow while maximizing your tax savings. But act quickly—financed equipment must also be in service by December 31, 2024, to qualify.

What’s Changing for 2025?

The Section 179 limits are increasing in 2025, with the deduction cap rising to $1,200,000 and the phase-out threshold adjusting to $3,000,000. While these higher limits create opportunities for larger purchases next year, acting now gives you immediate tax relief and shields you from anticipated price hikes.

Take Action Today

The clock is ticking on one of the most impactful tax-saving opportunities for business owners. Equipment purchased, delivered, and in service before December 31, 2024, qualifies for the deduction, making this the perfect time to invest in heavy equipment and trucks.

At Boom & Bucket, we offer a wide selection of high-quality used heavy equipment, from bulldozers to haul trucks, ready to help you meet your business goals and take advantage of Section 179.

Don’t wait—browse our inventory today and secure your savings before it’s too late!

For more detailed information, consult IRS Form 4562 and IRS Publication 946 or speak with your tax advisor. Make 2024 the year you maximize your savings and set your business up for long-term success.