Section 179 Deduction & Bonus Depreciation

Section 179 allows businesses to lower their current-year tax liability rather than capitalizing an asset and depreciating it over a period of time in future tax years.
All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2024 should qualify for the Section 179 Deduction, assuming they spend less than $4,270,000.

Benefits of Section 179:

  • Immediate expense deduction for purchases of depreciable business equipment.
  • Allowable deduction to maximum of $1,220,000.
  • Incentive to grow businesses with the purchase of new and used equipment.
  • The limit of capital purchases is $3,050,000.  


Bonus Depreciation:

  • A first-year 60% bonus depreciation deduction on qualified capital expenditures.
  • Bonus depreciation is taken after the section 179 spending cap is reached (currently $3,050,000) .
  • Bonus depreciation now includes used equipment.
  • Buy now as bonus depreciation will be reduced by 20% each subsequent year, reaching 0% in 2027!


This is an example of using the Section 179 Deduction by purchasing a WFT 13 CNC table-type machine. The figures here are for illustrative purposes only!

This is an example of using the Section 179 Deduction by purchasing a WRF 160 CNC floor-type machine. The figures here are for illustrative purposes only!

To take the deduction for tax year 2024, the equipment must be financed / purchased and put into service between January 1, 2024 and the end of the day on December 31, 2024. 


The information on this site is provided as a customer service by LUCAS PRECISION LLC. However, it should not be construed as tax advice. We strongly recommend that you consult with your tax advisor!