Section 179 and How To Sell Equipment You Already Wrote Off

Cristen Sousa
Aug 4
2 min read

If you’ve used Section 179 to deduct equipment costs in the past, and you're ready to upgrade—there’s one critical tax detail to understand: recapture of depreciation. This doesn’t mean Section 179 was a bad deal—far from it. But you need to know how to handle the sale of those assets to avoid surprises.

What Happens When You Sell Equipment You Wrote Off?

Under Section 179, you’ve already deducted the full cost of the equipment.
When you sell that equipment, the sale price is recognized as taxable income.
This is known as "depreciation recapture."

Example:

You bought a ROQ press for $120,000 in 2015 and wrote off the entire cost using Section 179.
In 2025, you sell it for $50,000.
That $50,000 is now considered income, and you’ll pay taxes on it.

But Here’s the Win-Win:

You’re buying a new press in 2025—say, another $150,000 ROQ system.
You use Section 179 again and write off the full amount.
That $150,000 deduction offsets your new $50,000 gain.
Net effect: you avoid the tax hit while modernizing your shop.

Green ROQ Automatic screen printing press

Smart Strategy for Upgrading

Use trade-in equity to lower out-of-pocket cost.
Combine write-off with 100% financing.
Improve throughput, reliability, and ROI with newer tech.
Keep your accountant happy (and tax bill low).

Selling Equipment You Wrote Off + Upgrading Strategy

Original Equipment Cost	Year of Purchase	Section 179 Taken	Resale Price	Tax on Gain	Offset with New Equipment	Net Tax Impact
$120,000	2015	Yes	$50,000	~$15,000	Yes (New $150K Write-off)	$0
$120,000	2015	Yes	$50,000	~$15,000	No New Purchase	~$15,000 Tax

Read our other Blog: Has Section 179 Changed For Your Business? In an industry where margins matter and efficiency drives growth, taking advantage of Section 179 could be one of the smartest financial decisions you make in 2025. With recent updates under the current administration and looming supply chain pressures, the time to invest in automation is now. Read More Here