Purchasing equipment by 12/31/2024 could help you lower your 2024 Taxes*

$1,220,000 Section 179 Deduction Limit; 60% Bonus Depreciation

Tax Benefits Breakdowns for C-Corporations (Taxed at 21%) Example Scenarios: 

Equipment Cost:                                    $500,000           $1,200,000            $2,500,000

Section 179 Deduction:                        $500,000           $1,200,000            $1,220,000

Bonus Depreciation (60%):                   $0                       $0                           $768,000

Normal 1st Year Depreciation:             $0                      $0                           $0

Total 1st Year Deduction:                      $500,000         $1,200,000             $1,988,000

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Tax Savings (21% Tax Bracket):            $105,000         $252,000              $417,480

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Cost of Equipment After Tax Savings: $395,000         $948,000           $2,082,520

 

Tax Benefits for Sole Proprietors, Partnerships, S-Corporations (This example taxed at 32%)

Tax Benefits Breakdowns for C-Corporations (Taxed at 21%) Example Scenarios: 

Equipment Cost:                                    $500,000           $1,200,000            $2,500,000

Section 179 Deduction:                        $500,000           $1,200,000            $1,220,000

Bonus Depreciation (60%):                   $0                       $0                           $768,000

Normal 1st Year Depreciation:             $0                      $0                           $0

Total 1st Year Deduction:                      $500,000         $1,200,000             $1,988,000

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Tax Savings (32% Tax Bracket):            $160,000         $384,000              $636,160

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Cost of Equipment After Tax Savings: $340,000         $816,000           $1,863,840

*Equipment must be purcharsed and placed into service by 12/31/2024. For Section 179 Deduction, $3,050,000 spending cap is the maximum amount that can be spent on equipment before the max Section 179 Deduction begins to be reduced on a dollar-for-dollar basis. This should not be considered tax advice. Please consult a qualified tax professional for guidance.

Are you considering whether or not to purchase or lease equipment in the current tax year? This Section 179 Deduction Calculator for 2024 may very well help in your decision, as Section 179 will save your company a lot of money

Visit the Section 179 Calculator.