Insights

We are proud to be named a West Coast Regional Leader for 2024

< Back to Insights and Resources

Maximize Section 179 Tax Benefits: What Businesses Need to Know

ARTICLE | December 06, 2024

Authored by Vasquez + Company


Internal Revenue Code Section 179 offers the opportunity for businesses to claim substantial first-year depreciation deductions on qualifying assets. However, navigating the intricacies of these tax breaks requires an understanding of annual adjustments, limitations, and coordination with first-year bonus depreciation rules.

Key Points:

  • Eligibility: Equipment, vehicles, and certain improvements can qualify for deductions.
  • Annual Adjustments: The maximum deduction for 2024 is $1.22 million, with phaseout thresholds starting at $3.05 million.
  • Pass-Through Entities: Owners of partnerships, LLCs, and S corporations must navigate two-tiered rules.
  • Bonus Depreciation: A separate 60% first-year deduction is available for 2024, dropping to 40% in 2025.

By understanding these rules and working with a tax advisor, businesses can maximize deductions while planning for long-term tax efficiency. For more information, read the full article here.

 

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Let’s Talk!

You can call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we’ll contact you to discuss your specific situation.

Required fields are marked with an asterisk (*)

Service(s) of interest*

Audit

Tax

Accounting

Bookkeeping

Business Consulting

Other

  • Should be Empty:

    • ​Vasquez + Company LLP has over 50 years of experience in performing audit, tax, accounting, and consulting services for all types of nonprofit organizations, governmental entities, and private companies. We are the largest minority-controlled accounting firm in the United States and the only one to have global operations and certified as MBE with the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission.

    For more information on how Vasquez can assist you, please email solutions@vasquezcpa.com or call +1.213.873.1700.

    Subscribe to receive important updates from our Insights and Resources.

    • Should be Empty: