As we enter Q4 and quickly approach the end of the year, we want to remind business owners to use Section 179 of the IRS Tax Code. Section 179 can be extremely profitable for your business, allowing you to invest in equipment while keeping more of your tax dollars. According to the IRS under the 2018 tax reform, and subject to limitations, businesses are able to deduct the full purchase price for qualifying equipment – yes, that could include the Kubota you purchased in 2024!

If you bought a piece of equipment in 2024, be sure to check with your CPA or tax preparer about deducting that full amount, as well as eligibility for a 60% bonus depreciation on both new and used equipment for the entirety of 2024. According to Section179.org, this includes qualifying equipment that was purchased in-full, as well as financed.

Buy Early. If you want to take advantage of the Section 179 benefits and deductions, it’s important to note that equipment must be acquired and put into service by December 31, 2024. We know it’s common practice to purchase equipment in the fourth quarter of the year, but don’t delay because equipment that is simply newly purchased but not delivered or used may not qualify until the year it is put into service. 

What’s new for 2024? According to Section179.org, this year’s deduction limit is $1,220,000 – a $60,000 increase from last year. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,220,000. In addition, the “total equipment purchase” limit has been raised to $3,050,000 (up from $2.89 million in 2023), meaning more equipment can be purchased and put to work before the $1,220,000 deduction limit is affected. The deduction can include both new and used qualified equipment. Be sure to discuss these limits with your tax preparer to see how your business qualifies.

Bring Purchase and Setup Records to your Tax Appointment. If you purchased equipment in 2024, you will need records that substantiate the date of purchase, the date you started using the equipment, and all costs associated with the purchase, like shipping and setup. If you lost any of this documentation, check with your Kubota dealer to obtain a copy. Your tax preparer can take the Section 179 deduction on certain qualifying business property by electing it, which is done by filling out the required form and including it with your business tax return. Please consult with your certified tax professional for eligibility and limitations that may apply.

Save Even More with Kubota’s Special Offers

Throughout the year, Kubota has a variety of special financing, customer rebates and other offers – many that are valid now through December 31. Visit your local participating Kubota dealer to take advantage of these year-end savings before time runs out.