Tax Advantages: Understanding Section 179 and Bonus Depreciation

As a family-owned business since 1904, we at Koenig Equipment understand the importance of making smart investments in your operation. That's why we're excited to share some valuable information about two key tax benefits that could help you save money and grow your business: Section 179 and Bonus Depreciation.

What Are Section 179 and Bonus Depreciation?

Section 179 and Bonus Depreciation are tax incentives designed to encourage businesses to invest in new and used equipment. Here's a quick breakdown:

• Section 179: Allows you to deduct the full purchase price of qualifying equipment bought or financed during the tax year, up to a certain limit.
• Bonus Depreciation: Enables you to deduct a percentage of the cost of eligible assets in the first year they're placed in service.

The Benefits for Your Business

Now, you might be wondering, "How does this help me?" Well, let's break it down in a way that matters to you and your operation:

• Immediate Tax Savings: By taking advantage of these deductions, you can lower your taxable income for the year, potentially resulting in significant tax savings.
• Invest in Growth: Use the money you save on taxes to reinvest in your business, whether that's upgrading equipment, hiring new staff, or expanding your operations.
• Stay Competitive: With the ability to write off both new and used equipment, you can afford to keep your fleet up-to-date with the latest technology and efficiency improvements.
• Flexible Financing: These tax benefits can make financing equipment more affordable, allowing you to preserve your cash flow while still reaping the benefits of new machinery.

What You Need to Know for 2024

For the 2024 tax year, here are the key numbers to keep in mind:

• Section 179 deduction limit: $1,220,000
• Bonus Depreciation rate: 60% (for equipment placed in service before December 31, 2024)

It's important to note that Bonus Depreciation is scheduled to phase out over the next few years, so now is the time to take full advantage of these savings.

We're Here to Help

At Koenig Equipment, we're more than just an equipment dealer. We're your neighbors, your partners in growth, and we're committed to helping you make the best decisions for your operation. While we can provide general information about these tax benefits, we always recommend consulting with your tax advisor to understand how they apply to your specific situation.

Ready to explore how these tax benefits can work for you? Visit one of our locations across Indiana and Ohio or contact your salesperson. We're here to help you find the right equipment solutions that fit your needs and your budget.

NOTE:
The information in this article is provided as a Customer Service by Koenig Equipment and John Deere Financial. However, it is not and 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.