Sec 179 - Purchasing A USED Dump Trailer for Small Business - Qualifying?

Yes, you absolutely can use Section 179 to deduct a used dump trailer purchase for your landscaping LLC. Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year, and this definitely includes used equipment like your dump trailer. The great thing about Sec 179 is that it applies to both new AND used business equipment, as long as the used equipment is "new to you" (meaning your business hasn't used it before). The $7,200 for the trailer is well under the Section 179 deduction limit for 2025, which is over $1 million. Just make sure you're using the trailer at least 50% for business purposes. If it's 100% business use (which sounds like the case for a landscaping company), you can deduct the entire cost in the year you purchase it instead of depreciating it over several years.

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If you need clarification directly from the IRS about Section 179 for your specific situation, good luck getting through to them! I spent THREE WEEKS trying to reach someone about a similar business equipment deduction question. Then I found https://claimyr.com which got me connected to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an agent picks up. I was able to verify exactly how to document my used equipment purchase for Section 179 purposes. The agent confirmed that as long as the dump trailer is used predominantly for business and hadn't been previously owned by my company, it fully qualifies.

Well I owe someone an apology. After my skeptical comment about that Claimyr service, I decided to try it when I had an issue with my business tax ID number that I needed resolved ASAP. I was absolutely convinced it wouldn't work, but I was desperate after spending 2 days trying to get through to the IRS myself. To my complete surprise, I got a text about 35 minutes after signing up saying they had an IRS agent on the line. Got connected immediately and had my issue resolved in about 10 minutes. The agent actually seemed surprised I got through so quickly too! Just wanted to follow up and say sometimes I'm wrong and this was definitely one of those times. Saved me hours of frustration.

Just a heads up for your specific situation - make sure you actually title and register the trailer properly. I have a pressure washing business in Georgia and bought a used trailer last year. Learned the hard way that for Sec 179 purposes, you need clear documentation that the asset was placed in service for business use. I'd recommend getting the trailer titled in your LLC's name, get commercial insurance on it, and take photos of it with your business logo/info if possible. My accountant said this creates a clear paper trail showing it's a legitimate business asset. Also, if you're financing any portion, make sure the loan is through your business, not personally.

dont forget to consider bonus depreciation too! for 2025 you can take 80% bonus depreciation on top of sec 179. might not matter for something small like a trailer but good to know for future purchases. i used both for my excavator last year and it was hugeeee tax savings

Great question! As others have mentioned, Section 179 absolutely applies to used equipment like your dump trailer. One thing I'd add is to make sure you document the business use percentage carefully. Since you mentioned this is for your landscaping LLC, you'll likely be at 100% business use, which is perfect. Also, consider timing - if you're planning to purchase near year-end, remember that Section 179 applies to the tax year when the equipment is "placed in service" (not just purchased). So if you buy it in December but don't start using it until January, it would apply to the following tax year. One more tip: keep detailed records of your business mileage and usage from day one. While you probably won't need it for the deduction itself, it's great documentation to have if you're ever audited. The IRS likes to see clear business purpose, especially for equipment that could potentially have personal use.

One thing to keep in mind with Section 179 is the business income limitation. You can only deduct up to your business's taxable income for the year. Since you mentioned your LLC was set up last year and business is picking up, just make sure you'll have enough business income to absorb the full $7,200 deduction. If your business income ends up being less than $7,200 this year, you can carry forward the unused portion to future years. But if you're expecting good income growth, taking the full deduction this year could be a great move to offset taxes on your increased revenue. Also, don't forget that the trailer needs to be used more than 50% for business to qualify for Section 179. For a landscaping company, that should be easy to meet, but it's worth documenting from the start just in case.