The Section 179 Tax Deduction allows a business to deduct all or part of the purchase price of certain qualifying equipment that is leased or financed.
- You can deduct up to $500,000 (plus an adjustment for inflation).
- The deduction phases out when a business purchases more than $2,500,000 in one year.
- In addition to the Section 179 deduction, you may also qualify for Bonus Depreciation. In 2017, you’ll be able to deduct an extra 50% of the cost of equipment for the year it was purchased. In 2018, it decreases to 40%, and then 30% in 2019.
With a $500,000 deduction limit, you’ll be able to deduct the full cost of equipment and get thousands back! Use the Section 179 Tax Saving Calculator to find out how much money could be put back into your pocket.
To take advantage of Section 179 in 2017, the equipment must be purchased and put into service by midnight 12/31/2017. Use Form 4562 to claim your deduction.