Section 179 for Trailers
Oct 28, 2026Last Updated on October 28, 2026 by John Myers
Last Updated on October 28, 2026 by allprotrailersuperstore
Section 179 offers a great opportunity to reduce your taxable income. Let’s break down this tax deduction for trailers and how to know if yours qualifies.
What Is Section 179?
Section 179 of the IRS tax code states that businesses can write off the total acquisition cost of tangible qualifying business property, such as equipment and machinery, within the year it is placed in service. As such, most commercial and business-use trailers qualify for this deduction.
How It Works
There are two key figures to understand with this deduction:
- Maximum deduction amount: This is the maximum dollar amount you can deduct under Section 179 in a single tax year. If your equipment purchases exceed that threshold, the remaining amount would typically be depreciated under standard IRS depreciation rules.
- Phaseout threshold: This is the total amount of qualifying property you can purchase and place in service during the year before the maximum deduction limit begins to decrease. If your total qualifying equipment purchases remain at or below the phaseout threshold, you can claim the full maximum deduction. If your total equipment spending exceeds that threshold, the maximum deduction drops dollar-for-dollar for each dollar you spend over the limit.
During the 2025 tax year, the maximum deduction amount was $2.5 million. For the 2026 tax year, the maximum deduction has increased to $2.56 million, with a phaseout threshold of $4.09 million.
Your deduction can’t surpass your business’s total active taxable income for that year. Any excess amount can be carried over to subsequent tax years.
Does Your Trailer Qualify for Section 179?
Use this checklist to determine if you can take the Section 179 deduction for a trailer:
- Is the trailer used in your active trade or business? It must be used for legitimate business purposes, such as hauling equipment, goods or materials.
- Does its business usage exceed 50%? The trailer must be used more than 50% for active business during the year you place it into service.
- Was it newly acquired? Both new and used trailers qualify for Section 179, whether they were financed or bought with cash. Either way, the trailer must be newly acquired by your business. You can’t deduct equipment you owned or used prior to the tax year. If you trade in a trailer, only the amount you pay counts toward the deduction. The trade-in value doesn’t.
- Was it placed into service during that tax year? The trailer needs to be placed in service and ready for active business use within the same tax year you plan to claim the deduction.
To claim this deduction, you can file IRS Form 4562 with your business’s tax return. Reach out to a tax professional if you need more information on eligibility or if you use your trailer for business and personal tasks. They can help you navigate the correct amount to deduct.
Browse Our Trailer Inventory
Now that you know how Section 179 works, you can confidently purchase your trailer with this deduction in mind. At All Pro Trailer Superstore, we have hundreds of new and used trailers available at our Mechanicsburg, PA, location. Since 1988, our family-owned business has proudly served the mid-Atlantic with responsive customer service, competitive pricing and flexible financing options.
Explore our large selection of trailers or contact us with any questions!
