IRS Section 179 allows construction businesses to deduct the full cost of qualifying equipment and software in the year it’s purchased and put into service. This tax benefit simplifies the process of writing off equipment expenses, helping construction companies invest in the machinery they need while improving their financial position. Whether you’re purchasing or financing new equipment, Section 179 can be a significant advantage to streamline your operations and reduce tax liability.
Excellent resource to service all CASE and Takeuchi machines in the metro area. They can get anything. The staff is always helpful and very knowledgeable.
Response from the owner: Thank you very much for the 4 star review. We would love to hear how we can improve to a 5 star! If there is anything that you need please feel free to reach out to one of our six construction locations. Thank you again for taking the time to give us a rating.
Response from the owner: Thank you very much for the 5 star review! Roger focuses each and every day to give a world class customer experience. We hope to see you soon. Thank you again for taking the time to give us a review.
Response from the owner: Thank you very much for the 5 star review. We strive to deliver a world class customer experience every time we see you. Thank you again and we look forward to seeing you soon.
Response from the owner: Pam, thank you! We are grateful for your 5 star review. Jenny does an excellent job and is very focused at providing a world class customer experience. Thank you again and we look forward to working with you in the future.
My experience was great.. I spoke with Jenny and she was more than a huge help. Very professional, friendly and knowledgeable.
Response from the owner: Thank you, Syretha! We are very grateful for your 5 star review. Jenny does an excellent job and is very focused at providing a world class customer experience. Thank you again and we look forward to working with you in the future.
Response from the owner: Thank you very much for the 5 star review. We appreciate your business and strive to deliver the best equipment and service in the industry. We look forward to seeing you soon.
Response from the owner: Thank you very much for the 5 star rating. We strive to deliver a world class customer experience each and every day. Thank you again and we hope to see you soon.
My husband rented equipment and worked with Josh. He was very respectful and new what he was talking about to help with all my husband's needs and questions. Very pleased and will be using Luby again in the future!
Response from the owner: Thank you very much for your review and rating. We appreciate your business Jenn and we look forward to seeing you soon. Thank you again and we hope you have a great day!
Response from the owner: Thank you very much for your review and rating. We appreciate your business and look forward to seeing you soon. Thank you again and we hope you have a great day!
This is a great piece of equipment. Kevin Peeler is very knowledgeable and made the process easy. We actually didn’t meet until he drove on the job site with my Takeuchi TL6. He earned my confidence over the phone.Mnnnmm
Response from the owner: Thank you very much for your review and rating. Luby Equipment and Kevin are focused on delivering a seamless customer experience on every sale. Thank you again and we look forward to seeing you soon.
Jenny was the best, answered questions on several calls that other dealers could not. I live in KC and shopped auctions, dealers nationwide, Facebook market place. Got my best deal on my TL12V2 machine from Luby with extended warranty. Drove to Fenton and picked up machine. Machine was as described and ready to go as promised. Jenny’s friendliness and listening to my wants sold me! Her boss should give her a raise thanks again!
Response from the owner: Thank you very much for the review and 5 star rating. Our goal is to deliver a world class customer experience on every transaction. We are thankful for your business and look forward to seeing you soon.
This was my first experience with Luby Equipment. Jenny Swafford was my sales person. She promptly made a deal with me working out the transportation and all the details. She kept me in the loop every step of the way and gave me many detailed pictures of the piece of equipment. I do many deals in my line of work and I can tell you she is among the best. I would do business again and hope I can. My experience with Lubys has been the best. I could not be happier. Good job Jenny I wish there were more like you doing business would be a much funner experience. Mike.
Response from the owner: Thank you Mike for your review and rating. Our goal is to deliver a world class customer experience each and every day. We appreciate your business and look forward to doing more with you in the future. Thank you again for the kind words and hope you have a wonderful day!
Response from the owner: Thank you so much for giving us a 5 star rating. We strive each and every day to deliver world class customer service. We appreciate your business and look forward to seeing you soon.
I recently purchased 2 machines from Luby Equipment and worked with Jenny Swafford. She was fantastic to work with and I am very pleased with the equipment and how easy Luby was to work with. Highly recommend them to anyone looking to purchase equipment.
Response from the owner: Thank you Steve for giving us a 5 star rating. We are very appreciative of your business and look forward to working with you again.
Response from the owner: Thank you very much for rating us. We strive to deliver the best customer experience in the industry. Please let us know if there is anything that we can do to improve.
Response from the owner: Thank you very much for the 5 star rating! Our goal is to give each and every customer the best customer experience in the industry. We look forward to seeing you soon and hope you have a great week. Thank you again for your continued business.
Response from the owner: Thank you very much for rating us. We strive for a 5 star rating from our customers so please let us know how we can improve your experience. Thank you again for rating us and we look forward to seeing you soon.
Response from the owner: Thank you Mike for giving us a 4 star review. Our goal is ensure our customers are happy with the services they receive each and every time they do business with us. If there is anything in particular that we can do better, please let us know. Thank you again for your review and we look forward to doing business with you soon.
Response from the owner: Carlos,Thank you very much for rating us! We appreciate it and look forward to doing business with you in the future. Please let us know if there is anything that we can do to improve.
Response from the owner: Thank you for your review! We appreciate your business!
Spending Limits of Section 179 for 2024
Section 179 comes with specific limits. For 2024, businesses can deduct up to $1,220,000 in equipment purchases. However, this benefit starts to phase out once total equipment purchases exceed $3,050,000, with the deduction reducing dollar-for-dollar. Once purchases reach $4,270,000, the deduction is fully phased out. These limits make Section 179 especially beneficial for small to medium-sized construction businesses looking to invest in new equipment and manage tax liabilities effectively.
How Section 179 Works for Construction Equipment Purchases
Section 179 allows construction businesses to write off the full purchase price of qualifying equipment in the current tax year. This incentive encourages businesses to invest in equipment immediately, rather than delaying purchases. For small businesses, this can significantly reduce the tax burden by allowing up to $1,220,000 of equipment costs to be deducted on the 2024 tax return. It’s a valuable tool for upgrading your fleet and improving operations while benefiting from substantial tax savings.
How to Claim Section 179 for Construction Equipment
Claiming Section 179 is straightforward. Businesses simply need to list their qualifying equipment purchases on IRS Form 4562 and submit it with their tax return. However, it’s crucial to consult a tax professional to ensure all details are accurate, as tax regulations can be complex and easy to misinterpret. A professional can help you maximize your deduction and ensure compliance with current tax laws.
Section 179 Example for Construction Equipment
Let’s consider the tax savings on a $100,000 construction equipment purchase under the 2024 Section 179 deduction. Assuming a 21% tax bracket, here’s how the tax savings break down:
Equipment Purchase Price:
$100,000
Section 179 Deduction Applied:
$100,000
Tax Savings (21% tax bracket):
$21,000
Equipment Cost After Savings:
$79,000
After applying the Section 179 deduction, you could save $21,000 in taxes, significantly reducing the net cost of the equipment. If you financed the $100,000 machine for around $2,083 per month, you would still be able to deduct the full purchase price, provided the equipment is put into service during the tax year.
While this example demonstrates the potential cash flow benefits, it’s important to remember that each business’s tax situation is unique. Always consult with a tax professional to ensure you’re making the best financial decisions for your company when utilizing Section 179.
Contact Us Today
At Luby Equipment, we’re always here to assist you. If you have any questions about our flexible leasing and financing options, don’t hesitate to give us a call. We make it easy for you to acquire the perfect machine for your business, so you can take advantage of the Section 179 deduction and keep your operations running smoothly.
