Accelerated Depreciation
Maximizing Tax Deductions through Section 179 and Bonus Depreciation
The United States Government enacted changes to Section 179 of the Internal Revenue Code and Bonus Depreciation effective for Tax Year 2025.
- What is Section 179? Internal Revenue Code 179 allows businesses to expense the full purchase price of qualifying equipment purchased during the Tax Year with a deduction limit of $2.5 million and phase-out thresholds beginning at $4 million for businesses that spend less than $6.5 million per year for equipment.
- What is Bonus Depreciation? Bonus Depreciation is an additional first-year allowance that permits businesses to deduct 100% of the cost of qualifying equipment placed in service after January 19, 2025.
- IRS Rules require that most businesses apply Section 179 first followed by Bonus Depreciation.
These changes to the Internal Revenue Code to permit more up-front deductions could lower your taxes for that same tax year of equipment purchase.
Talk to your professional advisor to determine if you should buy machines from Thompson Lift Truck this tax year to capitalize on the changes to the tax code.
Thompson Tractor Company (and its Thompson Lift Truck Division) does not provide legal, tax or accounting advice. The material presented above is for informational purposes only and should not be considered tax or legal advice. We recommend our customers to obtain and rely on such advice from its own professional advisors.