Blog

What is Tax Section 179?

At its core, Section 179 of the IRS tax code makes it possible for businesses to deduct the full sticker purchase price of any qualifying equipment (or software) purchased or financed during the tax year. This tax code, revised in recent years to remove loopholes, has become incredibly beneficial for small businesses including restroom trailer rental companies or businesses that rent shower, laundry, bunkhouse, or combo-use trailers. This code was created and subsequently revised to help incentivize small businesses towards buying new equipment and making internal investments that have wide-ranging implications throughout the economy. 

Rather than writing off a percentage of the purchase price based on depreciation, a common practice in the past, companies can now write off the entire purchase price of qualifying equipment for the current tax year and immediately benefit. This overhaul of Section 179 allows small businesses to purchase necessary equipment without having to worry about receiving minimal write-off benefits over several years. 

Learn More About Section 179 Deductions

Do I Qualify for Section 179 Deductions?

Unless you are a multi-state conglomerate that purchased several million dollars worth of rental trailers in 2024, chances are your business will qualify for Section 179 deductions. Any restroom trailer rental business that purchased, financed, or leased new or used business equipment with a total cost of less than $4,270,000 qualifies for Section 179 deductions. The newly revised write-off limit for 2024 is $1,220,000, up $60,000 from 2023. There are also additional limits placed on the total value of equipment purchases to qualify, set at $4,270,000, making this truly an incentive for small to medium-sized businesses. 

There is an additional requirement to qualify for Section 179, which is known as the “More Than 50% Business-Use” stipulation. Considering any restroom trailer rental business depends on these trailers for their primary business offerings, meeting this requirement should not be an issue and prohibit claiming the deduction limit. There is a simple formula to calculate the percentage use which can be shown as Cost of Equipment x % of Business Use = Monetary Amount Eligible for Section 179.

Finally, it is important to consider that not all equipment purchased in 2024 is applicable for the Section 179 Tax Deduction. However, through our years of experience, we’ve been able to confirm that all Lang Specialty Trailers do qualify for our customers and can provide much-needed tax relief come year-end. If you are interested in learning more about what other property qualifies for this deduction, you can follow the link below the dedication Section 179 website. 

What Equipment Qualifies for Section 179

Finalize Restroom Trailer Purchases for 2024

With 2024 coming to a close, now is the time to make any final new or used equipment purchases for your business to claim the full purchase price for your Section 179 deduction. All Lang Specialty Trailers products are qualifying equipment provided they meet the 50% business use restriction set by the IRS. Don’t lose your chance to reduce your tax bill while making a meaningful investment in your business ahead of 2025 and make next year your most successful! You can contact a member of our team at any point to learn more about our available premium-quality equipment and how to make the most of the tax breaks designed to help small and medium-sized businesses grow.

Contact Lang Specialty Trailers