Tax Deduction: Save on Equipment Tax with Section 179
How Section 179 Helps You Save on Equipment Purchases Like Trailers
The Section 179 equipment tax deduction is designed to allow businesses to deduct the full cost of qualifying equipment, such as trailers, as long as the equipment is purchased and put into service during the same tax year. This means you can save on equipment purchases like trailers, reduce taxable income, and reinvest the savings back into your business.
Business-use trailers such as flatbeds, dump trailers, and hopper trailers, showcasing different models that qualify for Section 179 tax deductions. These trailers are ideal for industries like construction, agriculture, and logistics, helping businesses save on equipment tax.
For 2024, the Section 179 deduction limit is $1,220,000, with a total equipment purchase cap of $3,050,000. This generous cap makes it an excellent time to invest in trailers or other critical business equipment.
What trailers qualify under Section 179 - View Our Trailer Inventory
Maximizing Tax Savings with Section 179 on Trailer Purchases
Purchasing trailers for your business and utilizing the Section 179 deduction can result in significant savings. Here’s how you can maximize your equipment tax savings using Section 179:
Purchase trailers before December 31: Only trailers purchased and in service before the end of the year qualify.
Both new and used trailers qualify: Whether you buy new or pre-owned trailers, both can be deducted under Section 179.
Stay within the Section 179 spending limit: You can deduct up to $1,220,000 in total equipment costs, provided your total trailer and equipment purchases don’t exceed $3,050,000.
By following these guidelines, your business can fully utilize Section 179 to expand its fleet while reducing tax liabilities.
Don't miss out on section 179 this tax season. Save on equipment tax by buying trailers for your business
What Types of Trailers Qualify for Section 179 Equipment Tax Deductions?
Most trailers used for business purposes qualify for the Section 179 equipment tax deduction. At Area Trailer Sales and Rentals, we offer a wide variety of trailers that can help your business save on taxes. Here are some popular trailer types that qualify:
Flatbed Trailers: Versatile trailers used for transporting heavy equipment and materials, commonly seen in construction and logistics sectors.
Dump Trailers: Excellent for industries like agriculture and landscaping, they allow easy transport and disposal of bulk materials.
Belly Dump Trailers: Known for efficient unloading, these are ideal for construction and road projects.
Hopper Trailers: Commonly used for bulk transport, particularly in the agriculture sector, to carry products like grain or sand.
Walking Floor Trailers: Best for recycling or waste management businesses that need quick and easy loading and unloading solutions.
Other Trailers: RGN Heavy Haul Trailers, Drop Deck Trailers, Side Dump Trailers and more.
By choosing any of these trailers, your business can take full advantage of Section 179 and improve operational efficiency.
How Bonus Depreciation Adds Even More Savings on Trailer Purchases
While Section 179 allows you to deduct the full cost of trailers, Bonus Depreciation offers an additional way to save on large equipment purchases. For 2024, Bonus Depreciation enables businesses to deduct a percentage of the cost of new or used trailers in the first year, with no overall spending limit.
This combination of Section 179 and Bonus Depreciation allows businesses to save even more when purchasing multiple trailers or exceeding Section 179’s cap.
View our inventory to see what trailers we have available for the section 179 equipment tax deduction.
Why You Should Invest in Trailers Now to Maximize Tax Deductions
With the year-end approaching, now is the perfect time to act if you want to maximize your tax savings with Section 179 and Bonus Depreciation. Here’s why investing in trailers now is a smart move:
Immediate tax savings: Deducting the cost of trailers in the current tax year can reduce your taxable income significantly, resulting in lower taxes.
Improved operational efficiency: New trailers come with advanced designs that are more durable and efficient, reducing downtime and long-term costs.
Increased capacity: Upgrading your fleet with new trailers can help you grow your service capacity, take on more jobs, and improve overall business performance
How to Claim Section 179 on Trailer Purchases
Claiming the Section 179 tax deduction for your trailer purchases is straightforward. Follow these steps to make sure you maximize your tax savings:
Purchase trailers by December 31: Only trailers bought and put into service before this date qualify for the deduction.
Keep accurate records: Save all receipts and documentation to prove that the trailers were bought and used for business purposes.
File IRS Form 4562: Use this form to claim the Section 179 deduction when filing your business tax return. View IRS Form 4562
By following these steps, you can ensure that your trailer purchases yield the maximum tax savings possible.
FAQs: Saving on Trailer Purchases with Section 179
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Most business-use trailers, such as flatbeds, dump trailers, hopper trailers, and belly dump trailers, qualify for the Section 179 deduction.
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Yes! Both new and used trailers qualify for the Section 179 deduction.
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The spending cap is $3,050,000, and businesses can deduct up to $1,220,000 of that total.
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After reaching the Section 179 deduction limit, businesses can deduct an additional 80% of the cost of qualifying trailers using Bonus Depreciation.
Conclusion: Maximize Your Tax Savings on Trailer Purchases
The Section 179 tax deduction presents a golden opportunity for businesses to save on equipment purchases, especially trailers, before the year ends. By investing now, you can reduce your tax burden, improve efficiency, and position your business for growth.
At ATSR, we offer a wide range of trailers—from flatbeds to hoppers—that qualify for Section 179. Contact us today to explore your options and secure your trailers before the tax deadline!
Learn more about buying a trailer this tax season A Guide to Buying a Semi Trailer
Note: The information in this article is for general purposes and should not be considered tax or legal advice. Tax laws change, and each business’s situation is unique. We recommend consulting with a qualified tax professional or accountant to ensure compliance with IRS regulations regarding Section 179 deductions and other tax-saving opportunities. Learn more about Section 179 and other tax incentives on the official IRS website.
