Section 179 calculator
Section 179 calculator for 2026
Estimate how much a Section 179 deduction could save on your next machine. For 2026, the deduction limit is $2,560,000 and it starts to phase out above $4,090,000 in purchases. Results are estimates and may not be accurate for your situation. Please consult your CPA.
Frequently asked questions
What is Section 179?
Section 179 of the tax code lets a business deduct the cost of qualifying equipment in the year it is placed in service, instead of depreciating it over several years. The equipment must be used more than 50% for business.
What is the Section 179 limit for 2026?
For tax years beginning in 2026, the maximum deduction is $2,560,000. It is reduced dollar for dollar once qualifying purchases for the year go over $4,090,000. Confirm current figures with your tax advisor.
Can I use Section 179 on financed equipment?
Generally, yes. The deduction is based on equipment placed in service during the tax year, whether you paid cash or financed it. Your tax advisor can confirm how it applies to your purchase and financing structure.
How is bonus depreciation different?
Bonus depreciation is a separate first-year deduction. 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025 (P.L. 119-21). Many businesses use both. Ask your tax advisor which mix fits your year.
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