Section 179 Tax Benefits

Frequently Added Questions

The information on this site is provided as customer service by RDO Equipment Co. and John Deere Financial. However, it should not be construed as tax advice. We strongly recommend that you consult with your tax advisor regarding how these tax-saving opportunities apply in your situation.

Is Used Equipment Eligible for Section 179?

Yes. Used equipment qualifies if it is “new to your business” and meets all IRS criteria, including a business-use threshold of over 50%.It must be purchased from a non-related party and placed into service during the tax year, all within the annual deduction limits.

Can I take the Section 179 and Bonus Depreciation Together?

Yes, you can combine Section 179 with bonus depreciation to maximize your tax benefits. After taking the Section 179 deduction, you can apply bonus depreciation (100% for 2025) to any remaining purchase price.

What is Section 179 Deduction?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software in the tax year it’s placed in service. This immediate write-off reduces taxable income, preserves cash flow, and avoids the need to depreciate assets over multiple years.

What are the Section 179 Limits for 2025?
For 2025, the maximum deduction is $2,500,000, with a phase-out starting at $4,000,000 in equipment purchases. Every dollar spent over this threshold reduces your available deduction. Always verify the current IRS guidelines, as these limits adjust annually for inflation.