In past years, when your business bought qualifying equipment, you typically wrote it off a little at a time through depreciation. However, many businesses preferred to write off the entire equipment purchase price the year they bought it. That's exactly what section 179 does.
It allows your business to write off the entire purchase price of qualifying equipment for the current tax year. So rather than waiting, the entire cost of qualifying equipment can be written off on the 2025 tax return (up to $2,500,000).
Limits
There are caps to the total amount written off ($2,500,000) and limits to the total amount of the equipment purchased ($4,000,000). The deduction begins to phase out on a dollar-for-dollar basis after $4,000,000 is spent, so this makes it a true small- and medium-sized business deduction.
Who Qualifies?
All businesses that purchase, finance and/or lease new or used business equipment during tax year 2025 should qualify for the section 179 deduction. The equipment must be used for business purposes more than 50% of the time to qualify, and it must be placed into service between January 1, 2025, and December 31, 2025. Simply multiply the cost of the equipment by the percentage of business use to arrive at the monetary amount eligible for section 179.
Final Steps
Check out True North HDD's inventory to take full advantage of Section 179. Don't miss your chance to save thousands of dollars by deducting the full purchase price of new and used equipment purchases for the 2025 tax year. Call 1-844-787-8343, and a member of our experienced team can help you select the right equipment for your business and explore financing options with low monthly payments.
Please consult with a qualified tax professional to determine if your business purchases are eligible for Section 179 tax deductions and whether taking the full deduction in the first year makes sense for your business.