Under Sec. 179, your business may be able to currently deduct eligible property placed into service during a tax year. This generally includes new and used machinery, equipment, off-the-shelf software, roofs, improvements to building interiors and HVAC, as well as fire, security and alarm systems. For 2024, you can expense a maximum of $1.22 million. That full amount may be claimed until property placed into service exceeds $3.05 million, at which point a dollar-for-dollar phaseout begins. For 2025, the expensing limit will increase to $1.25 million, with a phaseout amount of $3.13 million. Be aware that first-year bonus depreciation will drop to 40% in 2025, down from 60% in 2024.
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