2024 Year-End Tax Savings
Your next equipment purchase may qualify you for major tax savings!
Don’t wait until the last minute. Take advantage of significant tax benefits in 2024 by purchasing or financing new or used Cat® equipment and put into service by December 31, 2024. Contractors can capitalize on both section179.org and Bonus Depreciation to potentially deduct up to 100% of qualifying equipment purchases, helping reduce taxable income and free up cash for other business needs.
These year-end tax savings can help:
- Accelerate your business
- Increase your cash flow
- Defer your tax liability
- Improve affordability
Check Out Our Financing Offers:
CAT CCE MACHINES OFFERS
CAT CORE MACHINES OFFERS
CAT SMALL EXCAVATORS OFFERS
THE GREAT PAYBACK EVENT OFFERS
CAT PAVING OFFERS
Contact one of our machine sales representatives to secure the equipment your business needs before the end of the year.
What is Section 179?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software purchased during the tax year, rather than depreciating the asset over time. This makes it a powerful tax savings tool for small and mid-sized businesses looking to upgrade equipment or expand their operations.
For 2024, the Section 179 deduction limit has been increased to $1,220,000, with a total equipment purchase cap of $3,050,000. This means businesses can deduct up to the full purchase price of qualifying equipment, so long as it’s placed into service by the end of the year.
Key Benefits of Section 179:
- Applies to both new and used equipment.
- Allows for immediate savings, improving cash flow for your business.
What is Bonus Depreciation?
Bonus Depreciation is an additional tax incentive that allows businesses to deduct a large percentage of the purchase price of qualifying equipment in the first year it’s in service. Unlike Section 179, Bonus Depreciation has no cap on the total amount of equipment purchased and can be used by businesses of any size, including larger companies.
For 2024, Bonus Depreciation allows for a 60% deduction on both new and used equipment purchases. However, this percentage is set to decrease in the coming years, making 2024 an ideal time to invest.
Key Benefits of Bonus Depreciation:
- Can be applied to equipment purchases exceeding the Section 179 limits.
- Available for both new and used equipment (first use by the purchasing business).
- Provides an opportunity for businesses to accelerate depreciation and realize immediate savings.
How Section 179 and Bonus Depreciation Work Together
Combining Section 179 with Bonus Depreciation can offer businesses even greater tax savings. Here’s how it works:
-
- Section 179 is applied first, allowing you to deduct up to the limit of $1,220,000.
- Bonus Depreciation then kicks in, enabling you to deduct 60% of any remaining cost over the Section 179 limit.
Please see your tax professional to see what savings apply to your business this year.
*Disclaimer: Any financing is subject to credit approval. Equipment restrictions may apply. Equipment must be purchased and put into use by 12/31/2024. Hawthorne Cat does not provide tax advice and this should not be considered tax or legal advice. Customers should always consult their legal, tax or accounting advisor before making decisions. Visit the IRS website or the Section 179 website for more details.