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Section 179 Placed-in-Service Checklist + CPA Packet

What Does “Placed in Service” Mean for Section 179?

“Placed in service” means the equipment is delivered, installed (if applicable), and ready and available for its intended business use by the end of the buyer’s tax year — merely ordered or paid for is not enough. This free, print-ready checklist documents exactly that, plus the documents a CPA needs to support a Section 179 election. Sellers: attach it to every year-end quote. Buyers: complete it and hand it to your tax professional.

Section179.Org

Section 179 Placed-in-Service Checklist + CPA Packet

2026 tax year · Complete one per asset · Keep with the buyer’s tax records

1. Deal Information

Business name:

Equipment / asset (make, model, serial or VIN):

Seller / vendor:

Invoice #:

Purchase price: $

New or used:

Cash or financed (structure):

Delivery date:

Installation completed:

Placed-in-service date:

Business-use percentage:

2. Placed-in-Service Checklist

“Placed in service” generally means ready and available for the asset’s intended business use — an asset that is merely ordered, paid for, or still in the crate does not count.

  • Asset delivered to the business location
  • Installed, assembled, and tested (if applicable)
  • Ready and available for its intended business use
  • In service by the end of the buyer’s tax year (December 31 for most calendar-year businesses)
  • Used more than 50% for business
  • Placed-in-service date evidenced in writing (delivery/acceptance certificate, installation sign-off, or dated photos)

3. CPA Packet — Documents to Attach

  • Itemized invoice showing the asset, serial/VIN, and price
  • Proof of payment, or the signed financing agreement
  • Delivery / acceptance certificate with date
  • Installation or work-order sign-off (if applicable)
  • Dated photos of the asset on site (optional, but helpful)
  • Short business-use statement (what the asset does; estimated business-use percentage)
  • This completed checklist

4. 2026 Quick Facts for the Preparer

  • Maximum Section 179 deduction (tax years beginning in 2026): $2,560,000; the phase-out begins above $4,090,000 of qualifying property placed in service and is fully phased out at $6,650,000.
  • The deduction is also limited by the buyer’s taxable business income; Section 179 is elected on IRS Form 4562.
  • Used equipment can qualify if it is new to the buyer and used more than 50% for business.
  • Financed equipment may qualify when the buyer is treated as the owner for tax purposes (common with equipment loans and many $1-buyout structures); operating leases may differ.
  • 100% bonus depreciation may apply to eligible property acquired after January 19, 2025 — a separate provision with its own rules.
  • Some vehicles carry additional caps and substantiation rules, and some states do not follow federal Section 179. Current details: www.section179.org

Provided free by Section179.Org — an independent educational resource since 2006. General information only, not tax advice; eligibility and outcomes depend on the taxpayer’s facts and current law. Confirm with a qualified tax professional. Updated June 11, 2026.

Updated June 11, 2026. Figures reflect 2026 tax-year limits — confirm with IRS guidance or your tax professional.

How Sellers Use This

  • Attach it to every year-end quote and proposal: it turns “placed in service by December 31” from a worry into a written plan — delivery, installation, and documentation, agreed up front.
  • Send it as the follow-up your reps promise: “I’ll send a placed-in-service checklist you can forward to your CPA” — the talk tracks in our Seller Case Studies end exactly this way, and this page is the document.
  • Pair it with the rest of the seller toolkit: free Section 179 Qualified badges for your site and quotes, and seller-friendly ways to offer payments on our Equipment Financing Options page.

IRS sources: Publication 946, How To Depreciate Property · About Form 4562, Depreciation and Amortization.

This checklist is general information only and is not tax advice. Eligibility and outcomes depend on the buyer’s facts, tax situation, and current law — always confirm with a qualified tax professional.