The deduction cannot exceed your business’s taxable income for the year, and any unused amount may carry forward to future tax years. To claim the deduction, fill out IRS Form 4562 and submit it with your business tax return.
The One Big Beautiful Bill (OBBB) Act introduced several important changes in 2025 that affect how businesses expense equipment. These changes include:
Buying equipment for your business shouldn’t break the bank! At Mission Valley Kubota in San Jose, CA, we help local farmers, landscapers, and contractors make smart investments in quality equipment. We often recommend that our customers take advantage of Section 179 Tax Deductions when purchasing new equipment. Not familiar with Section 179? Check out our quick guide to learn what kind of equipment qualifies and key changes that took effect in 2025!
Section 179 of the Internal Revenue Code allows qualifying businesses to deduct the cost of an asset in the year it's placed in service, instead of depreciating it over several years. Eligible assets generally include tangible property used in your business, such as machinery and equipment. This means you can deduct the full cost of tractors, excavators, track loaders, and more!
If you’re in need of some new equipment, claiming Section 179 tax deductions can yield some significant advantages! Depending on your taxable income and the equipment you select, you may be able to deduct most or all of the purchase cost in the year you place your equipment in service. That improves your cash flow and makes it easier to reinvest in your operation!
Because state conformity, income limitations, and asset-specific rules may vary, it’s important to time your purchases and plan your deduction elections carefully. Luckily, the Mission Valley Kubota team has your back! We can help you find the perfect equipment, provide all the purchase documentation you need for your tax return, and more. If you’re ready to save big during tax season, give us a call or visit us in San Jose, California. Now is the time to invest in equipment that keeps your business moving!