Businesses must act fast if they plan to take the valuable Sec. 179 expense deduction this year. In 2024, you can expense up to $1.22 million in qualified assets. The deduction begins to phase out when 2024 qualified asset additions exceed $3.05 million. (In 2025, these limits rise to $1.25 million and $3.13 million, respectively.) But it’s not enough to purchase assets in 2024. To qualify for the deduction, assets must be placed in service before year end. Also, a Sec. 179 deduction cannot create a loss. Therefore, it’s limited to your total taxable business income. The good news is that you may be able to carry forward disallowed amounts. Depreciation can be complex, but we can help.
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