MAXIMIZE YOUR TAX SAVINGS BEFORE THE END OF 2024

tax saving equipment

As we approach the end of 2024, many business owners are looking for ways to ease the financial burden of equipment and software costs. If this sounds like you, it's time to take advantage of the Section 179 deduction before the year wraps up! This small business tax benefit is particularly beneficial for professionals in the surveying, construction, and technical services industries who utilize Duncan-Parnell products.

Why Section 179 Matters

Whether you're launching a new venture, expanding your existing business, or upgrading your equipment, the costs can quickly add up. Machinery, software, and geospatial solutions are essential tools but can strain your budget. The Section 179 tax deduction can help alleviate this pressure, allowing you to purchase and start using assets now while also putting money back in your pocket.

Understanding Section 179

Section 179 offers a significant tax deduction for businesses spending less than $4.27 million annually on equipment. It enables you to deduct the full purchase price of qualifying equipment in the year it’s placed into service, instead of spreading the deduction over several years. This immediate deduction provides multiple benefits:

Reduced tax liability: Lower your tax bill for the current year.
Increased cash flow: Reinvest your tax savings back into your business or address other critical needs.
Simplified accounting: Avoid the complexities of depreciation by deducting the full cost upfront.

Qualifying Assets Under Section 179

Eligible assets include both new and used equipment, software, and machinery, as long as they are purchased for the first time and put into use within the same year. Examples of qualifying assets include:

Geospatial and surveying equipment: Robotic total stations and GNSS receivers
Geospatial and mapping software: Data collection and processing software
Construction laser levels
Drones and mobile mapping equipment
Wide format printers
Equipment acquired through bank financing or capital leases

Limits and Bonus Depreciation

In 2024, the Section 179 deduction limit is set at $1,220,000. However, the maximum deduction is capped at your company’s net income, which means you cannot create a tax loss. To maximize your deductions, you can also utilize Bonus Depreciation.

Bonus Depreciation allows businesses to deduct 60% of the cost of qualifying equipment and software in 2024. Unlike Section 179, it has no annual limits, which can lead to larger deductions.

Note: All specific limits mentioned are applicable only for 2024.

Key Takeaway

You can use both Section 179 and Bonus Depreciation to optimize your tax savings. Many companies first utilize the Section 179 deduction up to its limit, then use Bonus Depreciation for any additional assets. We are not tax professions. Please consult with a tax professional to determine the best strategy for your business, as they can help you navigate the complex tax regulations and laws.

Action Step

Don’t miss out on these tax-saving opportunities — act before the end of 2024 to claim your Section 179 deduction! For product inquiries or assistance at Duncan-Parnell, contact us here or call us at (888) 675-4935.