Does Section 179 Apply to Used Equipment?

Not tax advice. Talk to your CPA.

Used heavy equipment qualifies for Section 179. The IRS requirement is not that the machine is new from the factory. It is that the machine is new to the buyer.

If you buy a used crusher, tub grinder, or trommel screen this year and put it to work in your business, you can deduct the full purchase price under Section 179 — the same as if you had bought new.


The Rule: New to You, Not New from the Factory

The IRS allows Section 179 on used equipment that meets these conditions:

  • New to the buyer. You cannot have previously owned or used the machine.
  • 50% or more business use. The machine must be used predominantly for business, not personal use.
  • Placed in service in the tax year. You must put the machine to work in the year you claim the deduction.
  • Financed used equipment qualifies. An equipment loan or $1 buyout structure makes you the owner for tax purposes. Full deduction based on full purchase price.


The machine does not need to be brand new, never-used, or currently under factory warranty. It needs to be a piece of equipment you are putting into business service for the first time as its owner.

For 2026, confirm the in-service date is December 31 or earlier. Equipment placed in service in January 2027 counts for 2027, not 2026.


What Qualifies vs. What Does Not

Scenario | Qualifies?

Used crusher bought at dealer this year | Yes

Used tub grinder new to your business | Yes

Used trommel screen, financed with equipment loan | Yes

Machine you already owned and previously depreciated | No

Machine already in your fleet, put back into service | No


Equipment on an operating lease | May not qualify -- confirm with CPA 

The disqualifying scenarios share one thing: the machine was already in your possession or already in service. Section 179 on used equipment is for machines that are new to your operation, not machines you are re-activating.

If you bought a used tub grinder three years ago and want to claim it now, that does not qualify. If you buy a different used tub grinder today, that qualifies.


Why This Matters for Contractors Shopping Used Heavy Equipment

GCS sells both new and used equipment. The Section 179 rules apply equally to both. A used machine does not carry a smaller write-off just because it cost less.

Example: A used jaw crusher at $150,000 and a new jaw crusher at $300,000 both qualify for Section 179. You deduct the full purchase price of each. At a 30% effective tax rate, the used machine returns $45,000 in year-one tax savings and the new machine returns $90,000. The deduction scales with the price you paid.

For contractors working with tighter capital, the math often looks better on used equipment. The machine costs less, the deduction is proportionally sized, and the total cash invested is lower.

GCS acts as a broker on used equipment. The seller sets the price. Your Section 179 benefit is calculated on what you actually pay. There is no secondary tier for used machines — the rules are the same.


View used equipment available now: Crushers | Tub grinders | Trommel screens


The Documents Your CPA Needs for a Used Machine

The documentation requirements for used equipment are the same as for new. Your CPA needs proof that the machine was placed in service in the tax year, that you are the owner, and that the machine is used for business.

Standard documentation package:

  • Itemized invoice with serial number, make, model, and purchase price
  • Signed delivery acceptance with the date the machine arrived
  • Dated photos of the machine on your job site or yard
  • Proof of payment or financing agreement if applicable
  • Business-use note confirming the percentage of business use


For used equipment, the serial number is particularly important. It ties the invoice to the specific machine and confirms that this is not a machine you already owned.


Download the GCS Section 179 Delivery Checklist. It covers both new and used purchases and includes every item your CPA will ask for. Free download.


FAQ

Does a used machine qualify if I buy it at auction?

Yes. The purchase channel does not affect qualification. What matters is that the machine is new to you, placed in service in the tax year, and used 50% or more for business. An auction purchase with a proper invoice and serial number qualifies the same as a dealer purchase.

Can I claim Section 179 on a machine I bought last year?

No. The deduction must be taken in the year the machine is placed in service. If you bought and put a machine into service in 2025 and did not claim Section 179 that year, you cannot go back and claim it in 2026. Your CPA can advise on amended returns or other options.

Does the used machine need to be delivered by December 31?

Yes. Delivered, set up, and in service by December 31. Ordered or paid for is not enough. The machine must be operational and placed into business service before the year ends.

What if I financed the used equipment?

Section 179 and Equipment Financing

Section 179 for Heavy Equipment: 2026 Limits and Deadlines

jaw crushers and impact crushers, tub grinders, and trommel screens on the market now. We run the numbers with you.


Email: Sales@grindercrusherscreen.com

Not tax advice. Talk to your CPA.