As a hardwood floor contractor, investing in the right hardwood floor equipment is essential for delivering exceptional results and staying ahead in a competitive industry. But did you know that purchasing equipment before the end of the year can also provide significant tax savings? Thanks to Section 179 of the IRS tax code, you can deduct the full purchase price of qualifying equipment from your gross income, reducing your tax burden and helping your business grow. Plus, paired with our year-end deals, you’ll get even more savings! Here’s everything you need to know about Section 179 for 2024.

Please note, this post is intended to offer ideas and opportunities, not specific tax advice. Please consult with your tax professional(s) concerning your specific situation.

What Is Section 179?

Section 179 allows businesses to deduct the cost of qualifying equipment and vehicles purchased or financed during the tax year, rather than depreciating those costs over time. It’s designed to encourage businesses to invest in themselves by making equipment upgrades more affordable.

For 2024, the deduction limit is $1,220,000, and the spending cap for equipment purchases is $2,890,000.

How Does Section 179 Work?

Here’s an example of how the deduction can help your bottom line:

1. Purchase Price: You invest $50,000 in a new hardwood floor sanding machine.
2. Section 179 Deduction: You deduct the full $50,000 from your taxable income for 2024.
3. Tax Savings: If your tax rate is 24%, your actual savings could amount to $12,000.

This immediate deduction can significantly reduce the financial impact of upgrading or expanding your equipment inventory.

Why Hardwood Floor Contractors Should Take Advantage of Section 179

1. Stay Competitive
   Updated equipment can improve efficiency, reduce downtime, and help you deliver higher-quality work, giving you an edge in the market.
2. Cash Flow Flexibility
   By deducting the full cost of equipment in the year of purchase, you retain more cash to reinvest in your business or cover other expenses.
3. Beat the End-of-Year Deadline
   To qualify for the Section 179 deduction in 2024, your equipment must be purchased and placed into service by December 31, 2024. Planning your purchases now ensures you don’t miss this opportunity.

What Equipment Qualifies for Section 179?

Section 179 covers a wide range of hardwood flooring equipment, including:

• Sanding machines
• Dust containment systems
• Nailers and staplers
• Buffers and edgers
• Ride-on sanders

Both new and used equipment are eligible, as long as they are purchased (not leased) and used for business purposes more than 50% of the time.

Financing Options for Contractors

Even if you’re not ready to pay for new equipment upfront, financing options allow you to take full advantage of Section 179. City Floor Supply offers interest-free financing for qualified contractors, making it easier to acquire the tools you need and deduct the full cost of your equipment while spreading out the payments — contact us at (800) 737-1786 to learn more.

Plan Your Purchases Now

If you’ve been putting off buying new equipment, 2024 is the year to act. With the higher deduction limit and spending cap, Section 179 provides an excellent incentive to upgrade your tools and grow your business.

How to Get Started

1. Review your current equipment needs.
2. Consult your tax advisor to confirm how Section 179 applies to your specific situation.
3. Purchase your equipment before the December 31, 2024, deadline.
4. Keep all purchase and financing documentation to ensure a smooth tax filing process.

Investing in your business doesn’t just help you deliver better results—it can also save you money. Don’t wait until the last minute to take advantage of Section 179. Equip your business for success and maximize your tax savings before the year ends.