Maximize Savings with Section 179 Deductions

It’s that time of year – the time when you’re awaiting that meeting with your accountant to see how your hard work in the field paid off, what it means for your bottom line and if you could take advantage of year-end benefits or deductions. 

If you’re looking to make a year-end combine purchase, look no further. Year-end offers from CLAAS FARMPOINT coupled with the opportunity to add IRS Section 179 deductions makes now an ideal time for farmers to consider adding to their fleet. 

Section 179 deductions ease machinery purchase costs 

Since they were expanded to the full purchase price of farm machinery and equipment in 2010, IRS Section 179 deductions have enabled farmers to claim bonus depreciation in year-one of a machine’s purchase versus normal depreciation schedules. The ceiling for Section 179 eligibility has been raised several times over the years.  

For the 2024 tax year, the deduction limit for a piece of machinery or equipment is just over $1.2 million, an increase of $60,000 from 2023’s limit. This means U.S. farmers can deduct the full purchase price of all qualified equipment purchases, up to the limit of $1,220,000. In addition, the “total equipment purchase” limit has been raised to $3.050 million, up from $2.89 million in 2023. 

“Today, Section 179 is one of the few government incentives available to small businesses and has been included in many of the recent Stimulus Acts and Congressional Tax Bills. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are actually taking action and getting real benefits,” according to Section179.org. 

These expanded deductions provide significant savings, allowing farmers to deduct up to the full purchase price of qualified equipment, which can greatly reduce the financial burden of upgrading their fleets. With the deduction limits increased for 2024, now is the time to take advantage of these incentives and make strategic investments before the year ends. 

Check out even more year end savings opportunities available through CLAAS FARMPOINT!