Sell now – buyers need your equipment for 2024 tax savings

If you’re assessing your equipment and business needs as we head into the last quarter of the year, there’s good news for buyers, and sellers can also benefit. That good news is a U.S. tax benefit called  Section 179.

Despite its lackluster name, Section 179 packs a punch when it comes to the tax deductions* it offers equipment buyers, who can deduct the full cost of equipment (either new or used) purchased before the end of the year from 2024’s taxable business income – up to US$1,220,000!

And that’s great news for sellers too, because U.S. buyers looking to capture the tax savings Section 179 offers will be motivated to complete their purchases by the end of 2024, meaning strong demand and strong pricing for used equipment.

A closer look at Section 179

Many people think the Section 179 deduction is some mysterious or complicated tax code. But it really isn’t. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

Here are some key points to know about Section 179. Equipment must:

• Be within the specified dollar limits of Section 179.
  For 2024, the deduction limit is US$1,220,000 if you purchase $3,050,000 or less of trucks or equipment.  
• Be placed into service in the same year the deduction is being taken.
  For 2024, buyers must purchase the equipment AND start using it for their business by December 31, 2024.
• Be purchased and used for business.
  Simply put, it’s got to be used for the buyer’s business. A motorcycle probably won’t qualify, but a dozer bought at auction most likely will.
• Be used 50% of the time.
• The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.

Check out this handy Section 179 calculator to find out how much you can save

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Sell now – waiting buyers need your equipment for 2024 tax savings!

Take advantage of everything Ritchie Bros. offers to help you sell equipment and trucks:

• Multiple, frequent buying & selling options including:
  • Dozens of upcoming live auctions before the end of the year
  • Weekly online auctions
  • Our 24/7 online marketplace
• Easy access to our global buyer audience
• Minimal investment of your time
• Maximum returns for your equipment

We’re ready and waiting to help you sell before the end of the year – contact us today!

*Ritchie Bros. is not a tax advisor. To learn specifically how your business may benefit from these tax law changes, please consult with your accountant or tax advisor. Nothing contained herein is meant to be, nor should it be considered, a guarantee as to price performance when selling with Ritchie Bros.

See also

How County Governments Can Turn Surplus Equipment Into Budget Relief