American Surplus Blog
Contact us: 800-876-3736

Section 179 Depreciation Deduction


Section 179 of the U.S. Internal Revenue Code allows taxpayers to deduct property of certain types against their income taxes as an expense rather than capitalizing or depreciating it. The type of property that is eligible for this deduction includes tangible, depreciable, personal property that is being bought for use in conduct of that business.

Why is this important? The amount of the maximum deduction a taxpayer can elect to take in a year is $500,000, ending December 31, 2013. After that, starting in 2014, the deduction amount will be lowered to $25,000. This means, if you buy used or new material handling equipment from ASI before the end of the year, you can write off up to $500,000 of it against your current income.


If a taxpayer has more than $2,000,000 in section 179 property placed into service in a single taxable year, the 179 deduction is reduced dollar for dollar by amount exceeding $2,000,000. This threshold is being reduced to $200,000 starting in 2014.


So act fast! Time is running out to take advantage of the section 179 depreciation deduction. Anything purchased from ASI will qualify, including used pallet rack, used conveyor systems, mezzanine, used shelving, forklifts, and more! We sell top quality used material handling equipment at a fraction of the cost of buying new.


Leave a Reply