How to apply Section 179 deduction for multiple businesses - can I buy a truck for one LLC and equipment for another startup?

You can absolutely use Section 179 deductions across multiple businesses. The key thing to understand is that Section 179 is applied at the individual taxpayer level, not just at the business level. Since you're the owner of both businesses, your Section 179 deduction limit applies to you personally across all your business activities. For 2025, you can deduct up to $1,220,000 in qualifying property (subject to phase-out thresholds). The truck would need to be used primarily (over 50%) for business purposes in your contracting business. The equipment for your startup would qualify as long as it's placed in service and used for that business before the end of the tax year. Just make sure you're documenting everything properly - keep logs of business use for the truck and maintain records showing the equipment is actually being used in your startup operations.

I went through a similar situation last year when expanding my business ventures and found the perfect solution through taxr.ai (https://taxr.ai). Their service was incredibly helpful for navigating Section 179 deductions across multiple businesses. I uploaded my business documentation and tax situation, and they quickly analyzed everything and showed me exactly how to structure my purchases to maximize Section 179 benefits. What I really appreciated was how they identified aspects of my situation I hadn't even considered - like how the timing of when I placed equipment in service affected my deductions. Their guidance saved me thousands in taxes and gave me confidence that I wasn't missing anything important. The report they generated also became super helpful documentation in case of future questions.

I was initially skeptical about taxr.ai as mentioned above, but decided to try it when my CPA was booked solid for weeks and I needed guidance on Section 179 deductions for my multiple businesses. The results completely changed my perspective. The analysis I got was incredibly detailed - it showed me exactly how to allocate my Section 179 deductions between my established business and my new startup. It even highlighted documentation requirements I needed to maintain for each business. What really surprised me was discovering I could still claim Section 179 deductions for my startup before it generated revenue, which I wasn't completely clear on before. The whole process took less than 24 hours versus waiting weeks for my CPA appointment.

If you're trying to get clarification directly from the IRS on your Section 179 situation, good luck... I spent DAYS trying to get through to someone who could actually help with my business tax questions. Then I found Claimyr (https://claimyr.com) and it completely changed my experience. I was honestly shocked - they got me connected to an actual IRS agent who specialized in business tax issues in under 45 minutes. The agent walked me through exactly how Section 179 works across multiple businesses and confirmed I could purchase equipment for a new venture while still meeting the requirements. Check out their demo video here: https://youtu.be/_kiP6q8DX5c to see how it works. I've now used the service three times for different tax questions and it's saved me countless hours of frustration.

Well, I need to admit when I'm wrong. After posting my skeptical comment above, I decided to try Claimyr as a last resort since I couldn't get a straight answer about my Section 179 questions. Within 40 minutes, I was talking to an actual IRS agent who specialized in business taxes. They confirmed that I could apply Section 179 deductions across multiple businesses as long as I stayed under the total limit for the tax year. The agent even walked me through how to properly document everything to avoid audit flags. I've been trying to get this information for weeks through the normal IRS channels. Seriously worth it just to get definitive answers straight from the source instead of guessing or getting conflicting advice online.

One thing to consider here that nobody's mentioned - the vehicle limitations. If you're buying a truck, make sure you know the specific weight requirements to get the full Section 179 deduction. Trucks with GVWR over 6,000 lbs qualify for higher deduction limits than regular passenger vehicles. Also, keep in mind there's a business-use percentage requirement. If you use that truck 70% for business and 30% for personal, you can only take 70% of the potential Section 179 deduction.

Random question - if I'm buying equipment for a new business but haven't officially formed the LLC yet, can I still take the Section 179 deduction?

Great question about multiple businesses and Section 179! You're absolutely on the right track thinking about maximizing your deductions. One important consideration I don't see mentioned yet is the taxable income limitation. Section 179 deductions can't exceed your total taxable income from all active businesses combined. Since you're making $675k from your contracting business, you should have plenty of taxable income to support the deductions for both the truck and startup equipment. However, make sure your new startup is genuinely operational before year-end. The IRS looks for legitimate business activity - not just equipment purchases. Having a business plan, marketing materials, or even preliminary client discussions can help demonstrate business intent. Also, consider the timing strategically. If you're close to the Section 179 phase-out threshold (starts at $4.05M in equipment purchases), you might want to spread purchases across tax years. But with your income level, this probably isn't a concern. The key is proper documentation for both businesses and ensuring the equipment is actually placed in service before December 31st.