Did You Buy Equipment Or Livestock In 2026? 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 2026 tax year.

You can get significant tax relief by writing off the entire cost of livestock, harvest equipment, tractors, planting equipment, tillage equipment, and other big-ticket purchases. To benefit from the tax deduction for 2026, you must buy or finance the equipment and place it into service by midnight on December 31, 2026.

What Assets Qualify For Section 179?

Whether you’re a farmer, a rancher, or the owner of a larger agricultural business, you can use the section 179 tax deduction for a range of purchases. Qualifying items may include the following:

• new and used farm machinery
• livestock
• construction equipment
• trucks and trailers
• sport utility vehicles
• computers
• off-the-shelf computer software
• office furniture

Consult the IRS Publication 946, How To Depreciate Property webpage for details.

What’s The Maximum Write-Off?

The maximum section 179 expense deduction for the 2026 tax year is $2,560,000 (up from $2,500,000 for the 2025 tax year). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $4,090,000 (by contrast, the limit was $4,000,000 for the 2025 tax year).

The IRS also specifies that the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2026 is $32,000 (up from $31,300 for the 2025 tax year).

How Can My Business Take The Deduction?

To claim the Section 179 deduction, taxpayers generally use Part I of IRS Form 4562, Depreciation and Amortization, and attach the form to the applicable tax return. Consult the 2026 Form 4562 and instructions when they are available.

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.

Get Equipment, Truck & Trailer Financing, Too

Whether you want to purchase new or used farm machinery, construction equipment, trucks, trailers, RVs, turf equipment, motorsports vehicles, or other assets through Sandhills Global trade sites such as TractorHouse.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.

DISCLAIMER: Currency does not provide tax, legal or accounting advice. The foregoing has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Limits and information mentioned is subject to change.