Section 179 Deduction Calculator
Computes immediate first-year expense deductions for qualifying business equipment
Cost of the equipment you want to deduct
All qualifying equipment purchased this tax year
2024 Section 179 Limits
Enter equipment cost and total purchases to calculate
Amount that must be depreciated over time
Estimated savings at a 25% tax rate
Frequently Asked Questions
What is the Section 179 deduction?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the first year instead of depreciating it over several years. For 2024, you can deduct up to $1,220,000 with a spending cap of $3,050,000.
What qualifies for Section 179?
Most tangible business property: equipment, machinery, vehicles (with limits), computers, software, office furniture, and certain improvements to nonresidential buildings. The property must be purchased (not leased) and used more than 50% for business.
What is the phase-out threshold?
The deduction begins to phase out dollar-for-dollar when total equipment purchases exceed $3,050,000 in a year. At $4,270,000 in purchases, the Section 179 deduction is completely eliminated. This targets the benefit toward small and mid-sized businesses.
Related Calculators
Self-Employed Deduction Finder
Identifies common tax deductions available to 1099 filers and freelancers
Home Office Deduction Calculator
Calculates deduction using both the simplified ($5/sq ft) and actual expense IRS methods
MACRS Depreciation Calculator
Generates IRS-compliant MACRS depreciation schedules for business assets year by year
Straight-Line Depreciation Calculator
Calculates equal annual depreciation for any asset based on cost, salvage value, and useful life