Did You Buy Oilfield Equipment In 2024? The Section 179 Tax Deduction Could Save You Money

Section 179 of the Internal Revenue Code (IRC) tax code allows businesses to deduct the full purchase price of qualifying depreciable assets purchased or financed anytime in the 2024 tax year. The maximum deduction for 2024 is $1,220,000.

You can get significant tax relief by writing off the entire cost of drill rigs, well service and workover rigs, production equipment, drilling equipment, and other big-ticket purchases. To benefit from the 2024 tax deduction, you must purchase or finance the equipment and place it into service by midnight on December 31, 2024.

What Assets Qualify For Section 179?

Whether you’re an independent contractor, oil and gas company, or production service company, you can use the section 179 tax deduction for a range of purchases. Qualifying items include new and used construction equipment, trucks, trailers, farm machinery, sport utility vehicles, computers, software, office furniture, and more. For a comprehensive guide to what does and doesn’t qualify for section 179, click here.

What’s The Maximum Write-Off?

The maximum section 179 expense deduction for the 2024 tax year is $1,220,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $3,050,000. The IRS also specifies that the maximum section 179 expense deduction for sport utility vehicles placed into service in tax years beginning in 2024 is $30,500.

How Can My Business Take The Deduction?

To take the section 179 deduction, your business must complete Part 1 of IRS tax form 4562, Depreciation and Amortization, and attach it to your company tax return. To learn more about the section 179 expense deduction and how it compares to section 168(k) of the IRC (commonly known as bonus depreciation), check out this post from the financing experts at CurrencyFinance.

Find New & Used Oilfield Equipment Fast

Since both new and used equipment can qualify for a section 179 deduction, it’s an excellent time to find the right oilfield machinery for your business on OilfieldTrader.com. Explore the homepage categories and search features for the equipment you need.

Get Oilfield Equipment Financing, Too

Whether you want to purchase new or used construction equipment, trucks, trailers, farm machinery, turf equipment, motorsports vehicles, or other assets through Sandhills Global trade sites such as OilfieldTrader.com, you can apply for financing quickly and easily through Currency.

The CurrencyFinance team specializes in matching equipment buyers with trusted lending partners offering competitive financing up to $500,000 with low fixed rates, flexible terms of up to 72 months, and little or no money down. Click the Currency Apply For Financing link on any listing to apply, or visit GoCurrency.com for more information.