What Is Section 179? A High-Level Guide for Hutson Customers
We’re not tax professionals. The information below is for general awareness only. Please consult your CPA or tax advisor for guidance specific to your business.
In Plain English
Section 179 is a part of the U.S. tax code that may let businesses deduct the full purchase price of qualifying equipment in the year it’s placed into service, rather than depreciating it over several years. This can help some businesses align tax deductions with the year they make an eligible purchase.
What May Qualify
Eligibility depends on IRS rules, but common categories often include:
Equipment and machinery used in your business
Certain vehicles (subject to specific limitations)
Computers and software
Office furniture and fixtures
Some used equipment (if it meets IRS requirements)
Always confirm with your tax advisor whether your specific purchase qualifies.
Key Considerations (High Level)
Annual limits: Section 179 has a maximum deduction amount each year.
Phase-outs: If total equipment purchases exceed a threshold, the benefit can phase out.
Placed-in-service requirement: The asset generally needs to be ready and in use within the tax year to be eligible.
New vs. used: Some used assets may qualify; rules differ by asset type.
Bonus depreciation: In some years, bonus depreciation may also be available in addition to, or after, Section 179 (rules and percentages can change).
Timing & Documentation
If you’re considering year-end purchases, timing can matter. Work with your advisor on:
When the asset is placed into service (not just purchased)
Keeping invoices, delivery receipts, and service records organized
Coordinating lead times to align with your year-end plans
How Hutson Can Help (Non-Tax)
While we can’t provide tax advice, we can help with:
Equipment selection: Matching the right machine to your job and budget
Lead times & delivery: Coordinating timelines so your equipment is ready for work
Quotes & documentation: Providing clear invoices and records for your files
Next Steps
Talk to your CPA or tax advisor about whether Section 179 or bonus depreciation fits your situation.
Share your timeline with Hutson so we can coordinate availability, delivery, and set-up.
Keep thorough records in case you need to substantiate your deduction.
Disclaimer: This content is for informational purposes only and does not constitute tax, legal, or accounting advice. Consult your professional advisor for guidance specific to your business.
