tax efficient structures
Understanding Section 179
Section 179
2025 Deduction Limit: $2,500,000
Available for new and used equipment, vehicles, machinery, etc., in addition to off-the-shelf software purchases (not applicable for custom software). To use the deduction in tax year 2025, the property must be financed and put into service by end-of-day on December 31, 2025.
2025 Bonus Depreciation: 100%
Bonus Depreciation is in addition to Section 179. Some years it isn’t applicable but in 2025 it is 100 percent. What that means is that equipment costing more than $2,500,000 can still get a deduction.
2025 Spending Cap: $4,000,000
Spend up to $4,00,000 on equipment. Beyond $4,00,000, the Section 179 Deduction starts to drop — dollar for dollar. This cap makes Section 179 a small to medium sized business tax incentive.
Section 179 Qualified Financing
Section 179 and Bonus Depreciation are available for leases and financing done for equipment, software, building improvements, computers, office furniture/equipment, etc. (qualified assets listed below). Contact an Aztec Financial Account Manager today to discuss your finance needs and how we can help you meet your purchasing goals prior to the December 31st deadline.
Qualifying Property & Equipment
New or Used Equipment, Off-the-Shelf Software, Vehicles for Business Use, Computers, Machinery, Office Furniture, Office Equipment, and Other Tangible Goods may qualify. Property must be used for business purpose more than 50% of the time, and if usage falls below 100% the deduction decreases proportionally.
We recommend contacting your tax advisor for additional information on Section 179, and how your business can best utilize Section 179 deductions for the 2025 tax year.