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Section 179 Deduction Calculator updated for 2013

Are you considering whether or not to purchase or lease equipment in the current tax year? This Section 179 Deduction Calculator for 2013 may very well help in your decision. The changes in the Section 179 Deduction limits for 2013 are significant, and will save your business a lot of money.

How much money can Section 179 save you?

The new Section 179 Deduction limits will have a real impact on your equipment costs. Here's an easy to use calculator that will 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.

Please note that this Section 179 Calculator fully reflects the new Section 179 limits and Bonus Depreciation calculation brought about by the various economic stimulus acts of the past several years.

Cost of Equipment, Vehicles, and/or Software:
Section 179 Deduction:
50% Bonus Depreciation Deduction:
(on remaining amount above $500,000)
Normal 1st Year Depreciation:
Total First Year Deduction:
Cash Savings on your Purchase:
(assuming a 35% tax bracket)
Lowered Cost of Equipment, Vehicles, and/or Software 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.
i.e. Calculation Using the Section 179 Calculator

Using a $350,000 equipment cost for a sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased. In the example, $350,000 in equipment purchased has a true cost of $227,500. That's $122,500 added to your bottom line, which is substantial.

In order to qualify for the Section 179 Deduction, the equipment must be purchased, financed or leased and put into service by December 31, 2013.


get the latest news

This website was designed to answer your questions regarding the Section 179 Tax Deduction, and to explain the impact the various Stimulus Acts have had on Section 179. The information on this site will clearly explain the Section 179 Deduction in plain terms; will go over what property qualifies under Section 179 for the deduction; and will explore the myriad of ways the Section 179 deduction can impact your bottom line. In addition, there are IRS tax forms and also tools for you to use, such as the free Section 179 Deduction Calculator currently updated for the 2013 tax year.