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IRS Section 179 tax savings

what is the IRS Section 179 deduction?

The IRS Section 179 Deduction allows small businesses to take the depreciation deduction for qualifying business assets in their first year, rather than factoring in depreciation over a longer period of time. See how much you can save with this easy-to-use calculator.

IRS Section 179 Deductions Highlights

  • Most new and used equipment, as well as some software, qualify for the Section 179 Deduction
  • 100% bonus depreciation for 2019 new and used equipment allowed*
  • Section 179 deduction limit is now $1,000,000**
  • 2018 Section 179 Deduction threshold for total amount of equipment that can be purchased is now $2,500,000

*Under Modified Accelerated Cost Recovery System (MACRS) Bonus Depreciation has increased first-year depreciation deduction to 100% (vs. 50%) of the adjusted gross basis of qualified property. This goes into effect for assets placed in service after September 27, 2017 and before January 1, 2023. Another significant change under the new tax law is the ability to use the bonus depreciation for purchases of new or used property. Under prior law, you could only use bonus depreciation for new property.

**Credit & equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section 179 depreciation schedule which allows rapid first year depreciation of certain assets acquired. The amount of previous depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax adviser or accountant for additional information. Equipment must be purchased and placed in service by 12/31/19.

Calculate Your Deduction

Cost of Equipment:
Section 179 First Year Write-Off:
$0.00
100% Bonus Depreciation: (On any remaining amount above $1,000,000)
$0
Normal First Year Depreciation: (Depreciation calculated at 5 years = 20%)
$0
Total First Year Deduction: (Add Section 179 Deduction, Bonus Depreciation and First Year Depreciation)
$0
Tax Savings on Equipment Purchase: (Assuming a 21% tax bracket)
$0
Lowered Cost of Equipment after Tax Savings:
$0

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