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When you’re just starting out as a restroom trailer operator, every dollar counts. That’s why it’s worth learning about the Section 179 tax deduction, a part of the U.S. tax code designed to help small and mid-sized businesses. While the details should always be reviewed with a qualified tax professional, here’s a high-level look at why Section 179 might matter for your business.

What Is Section 179?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year it’s placed in service, instead of depreciating it over many years. This can mean a much bigger tax deduction upfront, freeing up cash for other parts of your business.

• For 2025, the maximum deduction is $2.5 million, with a spending cap of $4 million (after which the deduction phases out) 
• The deduction applies only if equipment is used more than 50% for business purposes 
• Equipment must be purchased and placed into service by December 31, 2025

How This Applies to Rental Companies

Restroom trailers and other specialty trailers (like shower, laundry, and bunkhouse trailers) generally qualify as business equipment. That means, if you buy a trailer in 2025 and start using it in your rental business, it may be eligible for Section 179.

For a new operator, this can be especially helpful for the following reasons:

• Instead of deducting a trailer’s cost little by little over many years, you may be able to deduct much or all of it right away.
• A larger deduction can lower your taxable income, which may reduce your tax bill and free up funds for marketing or additional equipment.
• Beyond trailers, Section 179 may also apply to other qualifying equipment you need to operate your business.

For Mid- to Large-Size Companies: Bonus Depreciation in 2025

While Section 179 primarily benefits small and mid-sized businesses, larger rental companies can still take advantage of bonus depreciation.

Under the One Big Beautiful Bill Act (OBBBA), signed in July 2025, bonus depreciation has been restored to 100% for qualifying property placed in service after January 19, 2025.

Even if your company did not purchase equipment earlier in 2025, you may still benefit if you acquire and place qualifying equipment into service before year-end. This can be a powerful strategy for larger rental fleets or operations looking to optimize their 2025 tax position.

Why Talk to a Tax Professional?

Every business is different. Factors like income, purchase timing, and how you use your trailers can all affect how these deductions apply. Talking to a qualified tax professional ensures you:

• Confirm whether or not your trailers qualify
• Understand how Section 179 and bonus depreciation might work together
• Plan year-end purchases strategically

Whether you’re a new operator or managing a large rental fleet, 2025 offers major tax-saving opportunities through Section 179 and bonus depreciation. Both can help you reinvest more into your business and grow your fleet faster. We advise that you always consult your CPA or tax advisor before making decisions, however, looking into these deductions could save your business thousands.

Sources:

• www.irs.gov
• www.Section179.org