Section 179

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Save on Year End Equipment Purchases with Section 179 Tax Benefits

As we enter Q4 and quickly approach the end of the year, we want to remind business owners and farmers to take full advantage of Section 179 of the IRS Tax Code, which is a powerful tax incentive allowing you to invest in equipment while keeping more of your hard-earned dollars. Whether you're adding a new tractor to the farm, a track loader to your fleet, or upgrading to a professional zero turn for your lawn care business, your purchase may qualify for a tax deduction.

Quick References

Max Deduction in 2026: $2,560,000 (phase-out beginning above $4,090,000)

Bonus Depreciation: 100% (applies after Section 179)

New & Used Equipment qualify for full Section 179 deduction

Business-Use Requirement: Must be used over 50% of the time for business purposes

Did You Buy Equipment in 2026?

If you bought a piece of equipment this year, be sure to check with your CPA or tax preparer about deducting your purchase under the Section 179 tax code.

Buy Early to Qualify

To take advantage of Section 179 benefits for the 2026 tax year, equipment must be acquired and placed into service by December 31, 2026. It’s common practice to purchase equipment in the fourth quarter, but don’t delay! Equipment that’s purchased - but not delivered or used - before December 31st may not qualify until the year it’s put into service. Check in with your local CTC sales account manager today to get your best deal and delivery date locked in and lock in your savings.

How Can You Benefit from Section 179 Deductions?

In 2026, businesses can expense up to $2,560,000 of qualifying purchases. This is the max amount you are able to write off, so long as the purchases fall within the guidelines and phase-out rules.

Purchases must be:

Placed in service within the year you're claiming the deduction (For 2026 tax filing, it would be between January 1, 2026 through December 31, 2026)
Used for business purposes more than 50% of the time
Qualifying under IRS guidelines

Be sure to discuss these limits with your tax preparer to see how your business qualifies.

Example of Section 179 Tax Savings

Here's an example of Section 179 tax savings at work. Note that this scenario assumes the purchase is qualifying and the business meets the taxable income requirements for the full Section 179 deduction.

Equipment Cost: $130,000

(Assumed tax rate of 35% for this scenario)

Total First Year Deduction: $130,000

Tax Savings on Your Purchase: $45,500

Equipment Cost After Tax Savings: $84,500

FREE SECTION 179 TAX SAVINGS CALCULATOR

What to Bring to Your Tax Appointment

If you purchased equipment in 2026, you’ll need records showing:

Date of purchase
Date equipment was placed into service
All associated costs (shipping, setup, etc.)
To the extent any assets are for mixed-use, documentation of business usage percentage

If you’re missing documentation, give us a call! We will be happy to provide you with any necessary copies of on-file documents from your purchase. Your tax preparer can elect the Section 179 deduction by filing the appropriate form with your business tax return. Always consult a certified tax professional for eligibility and limitations.

Save Even More with Current Kubota, Bandit, and Land Pride Offers

Visit your local Coleman Tractor dealer of choice to take advantage of special financing, customer rebates and other year-end savings before time runs out! Our team is prepared and happy to help you get the best deal with your year-end purchases.

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For more information on Section 179, visit the official IRS website. Note that Coleman Tractor Company is not a source for tax or legal advice. Limitations under Section 179 may apply. See a qualified tax professional for advice on your specific situation.