What is the Section 179 Deduction?
Section 179 of the IRS Tax Code allows a business to deduct the full purchase price of equipment and off-the-shelf software that qualifies for the deduction for the current tax year.
What are the Section 179 Limits for 2023?
The Section 179 deduction limit for 2023 was raised to $1,160,000 and the total equipment purchase limit was raised to $2,890,000. This is an increase from the 2022 Section 179 tax deduction which was set at a $1,080,000 limit with a threshold of $2,700,000 in total purchases.
Bonus Depreciation: 80% for 2023
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
How much money can Section 179 save you in 2023?
The Section 179 Deduction has a real impact on your equipment costs. Use the calculator to help you estimate your tax savings. Simply enter in the purchase price of your equipment and/or software, and let the calculator take care of the rest.
Section 179 Tax Deduction Calculator
| (80% in 2023)
| (after Tax Savings)
The calculator presents a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease-purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring equipment or software for your business. For more information and for up to date information and calculations, please visit www.section179.org