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IRS Section 179 tax savings calculator

what is the IRS Section 179 deduction?

The IRS Section 179 Deduction allows you 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 2022 new and used equipment allowed
  • Section 179 deduction limit is now $1,080,000*
  • 2022 Section 179 Deduction threshold for total amount of equipment that can be purchased is now $2,700,000

*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 advisor or accountant for additional information. Equipment must be purchased and placed in service by 1/1/2023.

Calculate Your Deduction

Equipment Cost:
1st Year Write-Off: ($1,080,000 is the max. Section 179 write-off)
100% Bonus Depreciation: (On any remaining amount above $1,080,000)
Normal 1st Year Depreciation: (Depreciation calculated at 5 years = 20%)
Total 1st Year Depreciation: (Add Section 179 Deduction, Bonus Depreciation and First Year Depreciation)
Tax Savings: (Assuming Rate of 21%)
Net Cost After Tax Savings: Equipment Cost - Tax Savings

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