Take Advantage of Section 179 and Bonus Depreciation Tax Savings

Learn how Section 179 and Bonus Depreciation can save you money while you grow your fleet this tax season! Section 179 allows for tax advantages on the purchase of new and used equipment. However, there’s actually more than one advantage. In fact, there are two key tax benefits. Download this PDF flyer for more information.

The first key tax benefit is Section 179, which provides a deduction limit of $1,000,000 on new and used capital equipment purchases, with an investment cap of $2,500,000.

The second is Bonus Depreciation, which can be combined with Section 179 for additional savings. This allows additional depreciation on new and used (new to you) capital equipment. Bonus Depreciation phases out gradually: equipment placed in service between September 2017 and December 31, 2022 qualifies for 100% bonus depreciation, decreasing by 20% annually until reaching 0% in 2027.

Tax savings using Section 179 alone is $320,000, and using both Section 179 and Bonus Depreciation yields $480,000 in total first-year tax savings. These benefits were designed to stimulate the economy, enabling you to reinvest your savings in capital improvements, expansion, and more.

Don’t wait — buy that new or used equipment today! View financing options available through John Deere Financial.