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Unlock 2025 Tax Savings with Section 179

SECTION 179 • 2025 GUIDE

Unlock 2025 Tax Savings with Section 179

A practical guide for small businesses: how Section 179 works, what typically qualifies, how to sanity-check potential savings, and smart ways to pair financing with your purchase.

What Section 179 Does — In Plain English

Section 179 lets many businesses deduct the full cost of qualifying equipment in the same year it’s placed in service, instead of depreciating it over time. That can improve cash flow when you invest in tools, equipment, software, and certain building improvements.

Quick win: Buy qualifying equipment, put it to use in 2025, and you may deduct the cost this year (subject to limits and business income).

Key Numbers & Timing for 2025

  • Maximum deduction: up to $2.5 million on qualifying property.
  • Phase-out: begins after about $4 million in qualifying purchases.
  • Deadline: asset must be purchased (or financed) and placed in service by December 31, 2025.
  • Business income limit: Section 179 generally can’t create a tax loss; unused amounts may carry forward.

Planning tip: “Ordered” isn’t enough — the equipment must be delivered, installed, and operational by year-end to qualify.

Bonus Depreciation (When Your Spend Is Larger)

If you exceed Section 179 limits or want an additional first-year write-off, bonus depreciation may apply to the remainder. Many businesses use Section 179 first, then bonus depreciation.

What Typically Qualifies (and What Doesn’t)

Commonly Eligible

  • Machinery, tools, and equipment used in your trade or business
  • Computers, servers, printers, and office technology
  • Office furniture and fixtures
  • Business vehicles (special limits apply)
  • Off-the-shelf business software
  • Qualified improvements to non-residential buildings (e.g., HVAC, interior remodels, fire/security)

Generally Ineligible

  • Land and building purchase price
  • Inventory held for sale
  • Most intangible assets
  • Property used 50% or less for business

Estimate Your Potential Savings

Use Jendco’s Section 179 & Bonus Depreciation Calculator to get a quick projection before you buy.Open Tax Savings Calculator →

Example: A $60,000 equipment purchase could yield a first-year Section 179 deduction of up to $60,000 (subject to limits). At a 22% tax rate, that’s roughly $13,200 in estimated tax savings.

Financing + Section 179: Make the Math Work Harder

Spreading payments out while taking the deduction now can help cash flow. Once the equipment is in service, you may be able to claim the deduction this year and pay over time.

  • Pay over time, deduct now: claim the deduction in the year placed in service; make manageable payments over your chosen term.
  • Flexible checkout: Jendco offers PayPal Buy Now, Pay Later and Affirm on eligible purchases. All financing is subject to credit approval and terms from the provider.
  • Stack wisely: use Section 179 first, then consider bonus depreciation on remaining eligible basis.
Illustrative scenario: You acquire $25,000 of qualifying equipment in November using a pay-over-time plan. After it’s in service, you may deduct up to $25,000 under Section 179 (subject to income limits). At a 24% tax rate, that’s ≈ $6,000 in estimated tax savings this year while payments are spread out.

Quick Year-End Checklist

  • Confirm the item qualifies and will be in service by Dec 31, 2025.
  • Run numbers in the calculator.
  • Choose a financing option at checkout if it supports cash flow (subject to credit approval).
  • Coordinate Section 179 with bonus depreciation as needed.
  • File Form 4562 with your return and keep purchase/usage records.

Disclaimer: This material is for informational purposes only and should not be considered tax, legal, or accounting advice. Eligibility and limits vary by product and business use. Financing is subject to credit approval and terms from the provider. Always consult a qualified tax professional about your specific situation.

Oct 15, 2025 Jendco

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