Specials & Deals

Year End Tax Savings

Maximize Your 2025 Tax Savings Before Year-End: How Buying Equipment Can Benefit Your Business Under Section 179

As the year winds down, many business owners look for smart ways to reduce taxable income and strengthen cash flow. A proven strategy is using Section 179 expensing—and, new for 2025, 100% bonus depreciation is back for most qualifying purchases placed in service after January 19, 2025. If you’re in the market for farm equipment, construction machinery, or other business assets, buying and placing them in service before December 31, 2025 can deliver significant tax savings and keep your operation competitive.

At Dragoon’s Farm Equipment, we’ll help you find the right machine—and time your purchase to maximize the available tax benefits.

What is Section 179?

Section 179 lets businesses expense the full purchase price of qualifying equipment in the year it’s placed in service (subject to annual limits), instead of depreciating it over several years. For tax years beginning in 2025, the maximum Section 179 deduction is $1,250,000, reduced dollar-for-dollar once total qualifying purchases exceed $3,130,000. Certain SUVs (GVWR >6,000 lbs) are capped at $31,300 for Section 179 expensing.

Bonus depreciation in 2025: a big change

For 2025, Congress restored 100% bonus depreciation for qualified property acquired and placed in service after Jan. 19, 2025. That means after applying any Section 179 you elect, you can generally deduct the remaining basis immediately via bonus depreciation for eligible assets placed in service during that post-Jan. 19 window. (Assets placed in service Jan. 1–Jan. 19, 2025 generally follow the pre-change rules, which provided 40% bonus for 2025.)

Why this matters: Section 179 and bonus depreciation can work together to produce near-immediate write-offs on substantial equipment investments, improving after-tax cash flow.

Why buy before year-end?

  • Immediate tax savings & cash-flow impact: Expense up to the 2025 limits and, where eligible, apply 100% bonus depreciation to the remaining basis for property placed in service after Jan. 19, 2025.
  • Productivity now, not later: Upgrading to newer, more efficient machines boosts uptime and output while locking in current-year deductions.
  • Supply & lead-time reality: “Placed in service” means the equipment is ready and available for use in your business—so plan for delivery/installation schedules.

What typically qualifies?

Most tangible business equipment used more than 50% for business qualifies, including:

  • Farm equipment: tractors, planters, hay tools, harvesters
  • Construction equipment: excavators, loaders, skid steers
  • Vehicles: pickups and certain SUVs (note the 2025 SUV cap of $31,300 for Section 179; heavier non-SUV vehicles may qualify for full expensing subject to overall limits)
  • Tools & machinery and office technology (computers, printers)
    Always confirm eligibility and usage with your tax advisor.

Key rules to remember

  • Placed in service by Dec. 31, 2025 to deduct in 2025.
  • Section 179 limits (2025): $1,250,000 max; phase-out begins at $3,130,000; SUV cap $31,300.
  • Bonus depreciation: 100% for eligible property after Jan. 19, 2025 (generally 40% for Jan. 1–Jan. 19 property).
  • Business-use requirement: keep records showing >50% business use where applicable (especially for vehicles).

How Dragoon’s can help

Our team can align your purchase timeline with year-end tax planning and coordinate delivery so your equipment is in service by December 31. We’ll also connect you with financing options to support cash flow.

Tips for maximizing benefits

  1. Talk to your tax pro early. Your situation (entity type, income, state rules) drives the optimal mix of Section 179 vs. bonus depreciation.
  2. Schedule delivery/installation. Being “ready and available for use” by year-end is critical.
  3. Model the impact. High-income or phase-out scenarios might favor bonus depreciation or partial 179 elections.
  4. Vehicles need extra care. Watch the $31,300 SUV cap and document business use.

Conclusion

Purchasing equipment before the end of the year can significantly benefit your business—both operationally and financially. With Section 179, you can deduct the full cost of qualifying equipment from your taxable income, potentially saving your business thousands of dollars in taxes.

If you’re looking for quality farm equipment or machinery to take advantage of these tax savings, Dragoons Farm Equipment has a wide selection of reliable, durable equipment to meet your needs. Don’t wait—shop today to ensure you’re ready for 2024 with the tools and savings you need to succeed!

To browse our inventory, visit Dragoons Farm Equipment.

Disclaimer: Always consult a tax advisor to ensure you meet all criteria for Section 179 deductions. Tax laws and regulations can change, and your accountant will be able to guide you on how to best leverage these incentives for your business.

Resources

Contact our sales team for details!

Dan@Dragoonsfarmequipment.com

Ryan@Dragoonsfarmequipment.com

518-236-7110

Locally owned & operated since 1953
Welcome to

Dragoon’s Farm Equipment

Since 1953 Dragoon's Farm Equipment has supplied parts and whole goods in the farm equipment, lawn equipment, and garden equipment to farmers and homeowners. We maintain an expert service shop for every line we sell. We support the equipment we sell with factory-trained service technicians and a robust parts department. We are committed to offer you quality products at competitive prices with the best financing option. We proudly serve New York and Vermont as a locally owned and operated business.