Maximize Your Savings: Section 179 Tax Deduction on Mortuary Equipment
Investing in high-quality, Tennessee-built equipment is a significant step toward enhancing your facility's capabilities. The Section 179 tax deduction is a powerful tool from the IRS designed to help businesses like yours make these investments more affordable by allowing you to deduct the full purchase price of qualifying equipment in the year it's put into service.
How Section 179 Benefits Your Facility
In simple terms, Section 179 allows your business to treat the full cost of new or used equipment as an immediate expense. This means you can write off the entire purchase price of qualifying American Mortuary Coolers and Equipment—such as our walk-in mortuary coolers, freezers, autopsy tables, and medical stretchers—from your gross income. This incentive is designed to encourage businesses to invest in themselves and can significantly lower your tax liability for the year.
Current Section 179 Limits
The IRS updates the deduction limits annually to adjust for inflation. For the 2024 tax year, the limits are:
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2024 Deduction Limit:
$1,220,000-
This is the maximum cost you can write off for your equipment purchases.
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2024 Spending Cap:
$3,050,000-
This is the maximum amount of equipment your business can purchase before the Section 179 deduction begins to phase out on a dollar-for-dollar basis.
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This structure is specifically designed to benefit small and medium-sized businesses.
Understanding Bonus Depreciation in 2025 & Beyond
In addition to Section 179, businesses can take advantage of Bonus Depreciation, which is applied to the remaining cost after the Section 179 deduction is taken. The Tax Cuts and Jobs Act set a phase-down schedule for this benefit. For equipment placed in service in 2025, you can take a 40% bonus depreciation.
The phase-down schedule is as follows:
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60% for property placed in service in 2024
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40% for property placed in service in 2025
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20% for property placed in service in 2026
Taking bonus depreciation is optional, but it's a powerful tool for maximizing your first-year deductions.
Putting Your Equipment to Work: Key Conditions
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Business Use: To qualify, the equipment must be used for business purposes more than 50% of the time.
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Financed & Leased Equipment: Great news! Section 179 works for equipment that you purchase outright as well as for equipment that you finance or lease. This makes it a fantastic tool for preserving your cash flow while still getting the tax benefits. Check out our Financing Page to see how you can combine an affordable payment plan with this powerful tax deduction.
The Bottom Line: Consult Your Tax Professional
Tax laws, including Section 179, can change without notice. While this deduction can provide a substantial benefit for your facility, we strongly recommend you discuss your specific situation with a qualified CPA or tax professional to ensure you take full advantage of it.
Disclaimer
The information provided on this page is for informational and illustrative purposes only and is not intended to be tax or legal advice. American Mortuary Coolers and its owners, agents, and employees are not tax advisors. Please consult with your certified public accountant or other qualified tax professionals regarding your specific financial situation before making any purchasing decisions based on tax incentives.
Quick Reference: 2025 Section 179 Limits
Max Deduction (2025): $1,250,000 (phased out above $3,130,000)
Bonus Depreciation (2025): 40% (applies after Section 179)
New & Used Equipment: Qualifies for full Section 179 deduction
Specialized (Non‐Passenger) Vehicles: No special limit (treated like equipment)
SUVs & Trucks >6,000 lbs GVWR: $31,300 max first‐year Section 179; remainder depreciated
Business‐Use Requirement: >50% business use; deduction limited to % of business use