Section 179 Tax Deduction Calculator
Calculate your Section 179 tax deduction and see how much you can save on your 2024 taxes. Maximize your equipment purchase tax benefits with our free calculator.
✓ 2024 Tax Limits✓ Federal + State✓ Bonus Depreciation✓ Instant Results
Section 179 Tax Deduction Calculator
Calculate your Section 179 tax deduction and total tax savings for equipment purchases
About Section 179
What is Section 179?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year it's purchased and placed in service, rather than depreciating it over several years.
2025 Limits
- Maximum deduction: $1,250,000
- Spending cap (phase-out begins): $3,130,000
- Bonus depreciation: 40% (phasing down from 60% in 2024, ending 2027)
Requirements
- Equipment must be purchased and placed in service in the same tax year
- Deduction cannot exceed business income
- Equipment must be used for business purposes more than 50% of the time
- Must be new or used equipment (used equipment qualifies!)
Important: This calculator provides estimates only. Consult with a tax professional to determine your actual tax benefits and ensure compliance with IRS regulations.
Maximize Your Equipment Tax Savings
What Equipment Qualifies?
- ✓ Machinery and equipment
- ✓ Computer software
- ✓ Office furniture and equipment
- ✓ Vehicles over 6,000 lbs GVWR
- ✓ HVAC and refrigeration systems
- ✓ Manufacturing equipment
- ✓ Most tangible business property
Key Benefits
- ✓ Immediate tax deduction
- ✓ Improves cash flow
- ✓ No income limits for most businesses
- ✓ Works with financing
- ✓ Applies to new AND used equipment
- ✓ Can combine with bonus depreciation
- ✓ Encourages business investment
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