Farming isn't just a way of life. It's a business. And smart business owners know the importance of maximizing their investments, especially when it comes to essential equipment. Thanks to new updates in 2025, the IRS Section 179 tax deduction offers even more value for U.S. farmers and rural landowners.
Before making any major purchase, it's wise to consult a tax professional to ensure you’re following the latest IRS guidelines. For up-to-date details, visit Section179.org. To get you started, though, we’ve compiled a few common questions to help you understand Section 179 options that may be available to you.
How Does Section 179 Work?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment or software purchased or financed during the tax year. That means if you buy a piece of qualifying equipment — like a Massey Ferguson tractor — you can deduct the full price from your gross income, significantly reducing your tax bill.
Section 179 is one of the few tax incentives aimed specifically at small- and mid-sized businesses. It helps offset the cost of major equipment purchases by allowing companies to deduct the full purchase price from their gross income. This immediate tax relief encourages businesses to invest in the tools they need now, without waiting on future cash flow.
What Are the 2025 Deduction Limits?
Thanks to the 2025 One Big Beautiful Bill Act (OBBB), the limits have increased:
Maximum deduction: $2,500,000
Phase-out threshold: Begins at $4,000,000
Complete phase-out: $6,500,000
Bonus depreciation: 100% restored and made permanent for assets acquired after January 19, 2025 (assets acquired on or before January 19, 2025 are under the previous phase-down schedule and only 40%)
These new limits apply to equipment placed in service between January 1 and December 31, 2025. Bonus depreciation applies to both new and used equipment, as long as it is "new to you."
What Kind of Equipment Qualifies?
To make the most of Section 179, your equipment must be:
Purchased or financed and placed into service by 11:59 PM, December 31, 2025
Used for business purposes more than 50% of the time
Acquired from a non-family source (not a spouse, parent or child)
Bought — not gifted or inherited
The good news? Most equipment used in your operation likely qualifies. From versatile compact tractors like the MF 1GC.23 to high-horsepower workhorses like the MF 9S Series, there's a Massey Ferguson machine designed to meet your needs and help you take full advantage of Section 179 savings.
Does My Farm Qualify as a Business?
For smaller producers, being recognized as a business in the eyes of the IRS is important. To qualify as a farm business, at least two-thirds of gross income must come from farming. Anything less, and the operation is considered a hobby — not a business — and therefore ineligible for Section 179 deductions.
Can I Claim Equipment Delivered in 2024?
No. Equipment must be placed into service by 11:59 PM on December 31 of the tax year to qualify for that year’s deduction.
Thankfully, your local Massey Ferguson dealer has you covered. Call or stop by today to check out available equipment. From mowers to high-horsepower tractors, our dealers carry a range of equipment for any size operation.
Who Should Take Advantage of Section 179?
Small-scale producers can deduct equipment like the MF 1M or 2M Series, making land care more affordable
Mid-sized operators can invest in reliable utility tractors like the new MF 5M Series without worrying about multi-year depreciation
Large farms and hay producers can deduct high-ticket items like windrowers, balers and the powerful MF 9S Series
When Should I Act?
The window to take advantage of these generous deductions closes December 31, 2025. Equipment must be purchased and placed into service before year-end to qualify.
Need help deciding what qualifies or want to run numbers on potential savings? Your local Massey Ferguson dealer can guide you through equipment options and the Section 179 benefits. Give them a call today!
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