Using Section 179 to Maximize Year-End Tax Savings Without Sacrificing Cash Flow

As year-end approaches, CFOs and controllers are focused on ways to optimize tax efficiency while protecting cash flow. One of the most effective and often overlooked levers is Section 179 of the IRS tax code. For companies planning technology investments or equipment upgrades, this provision can deliver substantial tax relief in the current year.

With proper execution, businesses can deduct the entire cost of qualifying equipment placed into service by December 31, even if the asset is acquired through a lease.

What Is Section 179?

Section 179 allows companies to deduct the full cost of eligible equipment or software in the same tax year it is placed into service. This immediate expensing accelerates tax savings and reduces year-end taxable income.

Eligible items include:

• Business-use laptops, servers, and AV gear

• Medical, logistics, or industrial equipment

• Enterprise or operational software

For many firms, Section 179 deductions can offset $250,000 to $1 million in taxable income and improve net cash retention during Q4.

Leasing Still Qualifies for the Deduction

An often-missed opportunity is that leased equipment may still qualify for Section 179 benefits. If structured correctly, businesses can:

• Deduct the full value of the leased equipment

• Defer payment over multiple years

• Complete a refresh or upgrade cycle without a large upfront spend

Example: A business leases $400,000 worth of technology in October. The equipment is installed by December. That business can deduct the entire $400,000 on its 2025 taxes, even though payments begin in 2026.

This combination of upfront tax benefit and deferred expense provides flexibility without impacting working capital or disrupting operations.

Timing and Execution Risks to Monitor

To claim the deduction, the equipment must be both acquired and actively used before year-end. Risks that can derail eligibility include:

• Procurement or shipping delays in Q4

• Late-stage internal approvals

• Unclear documentation or service status

If the equipment is not in service by December 31, the deduction shifts into next year, potentially reducing its financial impact and causing planning disruptions.

How CoreTech Can Help

CoreTech works closely with finance and operations leaders to ensure lease structures, timing, and documentation all align with Section 179 eligibility. Our process includes:

• Asset selection and qualification guidance

• Coordination of vendor timelines to meet IRS deadlines

• Lease structuring that aligns with budget and cash flow goals

If you are planning a capital equipment refresh or need to reduce year-end tax exposure, we can help you act quickly and strategically.

📩 Contact info@coretechleasing.com to review timing, eligibility, and execution planning.