The world of taxes is vast… and complicated. Even after doing some online research, you still may not get your specific questions answered. Tax professionals can help, but not for free. But we’re here to help with a common lawn equipment tax question, at least.
If your profession requires the use of lawn equipment, you can get tax benefits for your purchases. Learn more about what you can write off and why the end of the year is a great time to consider making another investment.
A tax deduction is an expense you can subtract from your total income. This reduces the amount of income that can be taxed, which lowers your taxable income and potentially results in a lower tax bill. The Section 179 Deduction is most relevant for the purposes of today’s post, as it allows businesses to deduct the full purchase price of qualifying equipment purchased during the tax year. This is extremely valuable for any business (whether a company or individual) looking to invest in needed assets.
What Equipment and Property Qualifies
Don’t go buying all the equipment you want just yet, however. Make sure your business, property and equipment meet IRS requirements. To qualify for the Section 179 deduction, the lawn equipment must meet certain criteria, including:
- Being tangible property: Lawn equipment such as mowers, trimmers, blowers and other machinery qualifies as tangible property.
- Purchased for business use: The equipment must be purchased and used primarily for business purposes. If you use the equipment for both business and personal use, you can only deduct the portion used for business.
- Purchased and put into service in the tax year: The equipment must be purchased and put into service during the same tax year in which you are claiming the deduction. You can’t stock up on equipment that you won’t use for a year or two and write it off the same year you purchased it.
Limits You Should Be Aware Of
The total cost of the equipment you are deducting under Section 179 must fall within the annual limits set by the IRS. For 2023, the deduction limit was raised to $1.2 million and the total equipment purchase limit was raised to $2.9 million for businesses. These limits can change from year to year, so be sure to check current laws for most up-to-date information. You should also still consider talking to a tax professional about your specific situation.
If you have other questions about writing off your lawn equipment or landscaping equipment in Texas, contact Classic Turf Equipment or stop by one of our Dallas-Fort Worth locations today. While you’re here, consider purchasing some new equipment that you can write off!