Does Section 179 apply to used equipment?

Yes. Section 179 applies to both new and used equipment, as long as it is new to your business and put into service during the tax year.

Who qualifies for Section 179?

Any business that purchases, finances, or leases qualifying equipment. This includes recording studios, production companies, churches, schools, nonprofits, and freelance engineers operating as a business.

Tax Savings

Section 179 Tax Deduction

Q: What is the Section 179 deduction?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software in the year of purchase, rather than depreciating it over several years. For 2025, the deduction limit is $1,220,000.

Write off the full cost of qualifying studio equipment in the year you buy it. New or used. Purchased, financed, or leased.

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$1.22M

2025 limit

100%

Year-one write-off

Dec 31

Annual deadline

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Overview

What Is the Section 179 Deduction?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment in the year it was purchased, rather than depreciating it over several years. For studios, production companies, churches, and any business buying pro audio gear, this means significant tax savings — potentially thousands of dollars on a single purchase.

The deduction applies to tangible business equipment that is purchased, financed, or leased and put into service during the tax year. Both new and used equipment qualify, as long as the equipment is new to your business.

How It Works

Three Steps to Your Deduction

Equipment must be purchased and put into service before December 31 of the tax year.

Purchase Qualifying Equipment

Buy new or used pro audio, studio, recording, or production equipment from Vintage King. Financed and leased equipment also qualifies.

Put It Into Service

Install and begin using the equipment in your business before December 31. It must be actively used for business purposes — not just purchased and stored.

Claim the Deduction

File IRS Form 4562 with your annual tax return. Deduct the full purchase price up to the annual Section 179 limit. Consult your tax professional for specific guidance.

Eligibility

Who Qualifies?

Any business entity that purchases qualifying equipment for business use.

Recording Studios

Commercial and project studios

Production Companies

Film, TV, podcast, broadcast

Churches and Nonprofits

Houses of worship, 501(c)(3)

Schools and Universities

Music programs, media labs

Freelance Engineers

Operating as a business entity

Live Sound Companies

Touring, installed, rental

Qualifying Equipment

What Can You Deduct?

Tangible equipment purchased for business use. Both new and used qualify.

Microphones

Condensers, ribbons, dynamics

Preamps and EQs

Channel strips, outboard

Compressors

Hardware dynamics processors

Interfaces and Converters

AD/DA, USB, Thunderbolt

Monitors and Speakers

Studio monitors, subs

Consoles and Mixers

Analog, digital, control surfaces

Recording Furniture

Desks, racks, acoustic treatment

Installed Systems

Studio wiring, patchbays, infrastructure

See How Much You Could Save

Here's a simplified example of how Section 179 works for a studio purchasing $50,000 in equipment. The actual tax benefit depends on your tax bracket, business structure, and state laws.

Equipment purchased, financed, or leased before December 31 qualifies. The gear must be put into service in the same tax year — simply ordering before the deadline is not sufficient.

This is a simplified illustration. Consult a qualified tax professional for your specific situation. Vintage King is not a tax advisory firm.

Equipment purchased$50,000

Section 179 deduction$50,000

Assumed tax bracket35%

Estimated tax savings$17,500

Net equipment cost$32,500

2025 DEDUCTION LIMIT: $1,220,000 · PHASE-OUT BEGINS AT $3,050,000

Frequently Asked Questions

Section 179 FAQ

What is the 2025 Section 179 deduction limit?

For 2025, the Section 179 deduction limit is $1,220,000. The total equipment purchase limit is $3,050,000, after which the deduction begins to phase out dollar-for-dollar. These figures are adjusted annually for inflation.

Does financed or leased equipment qualify?

Yes. Equipment that is purchased, financed, or leased qualifies for Section 179 — you can deduct the full cost in the year it is put into service, even if you are making monthly payments.

Can I deduct used equipment?

Yes. Both new and used equipment qualify, as long as the equipment is new to your business and purchased and put into service during the tax year.

When is the deadline?

Equipment must be purchased AND put into service before December 31 of the tax year. Simply ordering before December 31 is not sufficient — the equipment must be installed and in use.

Do I need a tax professional?

This information is provided for general awareness. Section 179 rules can be complex. We strongly recommend consulting a qualified tax professional to determine your specific eligibility and deduction amount. Vintage King is not a tax advisory firm.

Can Vintage King help me plan a Section 179 purchase?

Yes. Our Audio Consultants can help you select qualifying equipment, arrange financing through our leasing partners, and coordinate delivery timelines to ensure your gear is in service before the December 31 deadline. Call 888.653.1184 to get started.

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