Hi,
Most business owners who plan to buy equipment next year are giving up a large deduction just because of timing.
If you place the same purchase in service by December 31 instead of January, you can deduct 100% of its cost on your 2026 return, not a small piece of it each year for the next five to seven years.
It’s not just about vehicles. If your business is buying any of these, there’s a good chance it qualifies:
- Computers, laptops, servers, phones, and off-the-shelf software
- Machinery, tools, and production or manufacturing equipment
- Office furniture, fixtures, and equipment
- Heavy SUVs, pickup trucks, and vans over 6,000 lbs used more than 50% for business
- Construction, landscaping, medical, restaurant, or salon equipment
- Interior improvements to your commercial space, like lighting, flooring, or HVAC
- Used equipment, as long as it’s new to your business
It reaches far more industries than people expect: construction, trucking, healthcare, manufacturing, restaurants, e-commerce, real estate, professional services, and more.
Here’s how the savings work:
- 100% bonus depreciation is back, and it’s permanent. The 2025 tax law restored the full first-year write-off for equipment acquired after January 19, 2025, so there’s no phase-down to worry about.
- The deduction comes off your income right away. A $80,000 equipment purchase at the 24% bracket saves about $19,200 in federal tax this year, before any state savings.
- Larger purchases add up fast. $150,000 in equipment at the 32% bracket is about $48,000 back in your pocket this year.
- Financing still counts. Equipment bought with a loan or financing still qualifies for the full deduction, even if you’ve only made a few payments.
- Section 179 works alongside it. Businesses can expense over $2.5 million in qualifying purchases, and we choose the right mix for your situation.
- The key date is December 31. The equipment has to be purchased and in use by year-end. Ordering it isn’t enough.
A big write-off only pays off when it lands in the right year, against the right income, with the paperwork to back it up. That takes every piece of your finances working together, so here’s how we keep it all connected:
- Your books, ready before year-end: monthly or annual bookkeeping, so we know your profit before you buy, not after
- Your purchases, timed right: we map planned equipment buys against your income, so each dollar saves the most tax
- Your payroll, fully handled: multi-state payroll plus contractor 1099s, filed on time
- Your sales tax, compliant: registration and filings in every state where you’re required to collect
- Your estimates, adjusted: quarterly payments updated after big purchases, so you don’t overpay during the year
- Your savings, fully mapped: a one-hour review of every credit and deduction you qualify for, depreciation and beyond
- Your returns, in one place: personal and business, prepared by the same team that knows your whole picture
Reply to this email by Friday and we’ll set up a free 15-minute call with our senior tax advisor to go over your situation. Bring your list of planned purchases, your last invoice from your tax advisor/strategist, tax preparer, bookkeeper, and payroll provider, so we can discuss how you can have everything under one roof.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com