Section 179 Explained

Section 179 is an attractive tax deduction for small and medium businesses. It’s also very easy to understand and utilize.

Deduction Calculator

How much money can Section 179 save you in 2023? This calculator will help you estimate your tax savings.

Qualified Financing

Taking the Section 179 Deduction on financed equipment might be the most profitable business decision you make this year.

Section 179 Petition

Sign Your Approval for Section 179 and let Congress know you want to keep Section 179 business-friendly and strong.

News Alert: The 2023 Section 179 Deduction Limit for Businesses is $1,160,000

Jan 2, 2023 – The Section 179 deduction for 2023 is $1,160,000 (this is up from $1,080,000 in 2022). This is a full $80,000 increase from last year. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,160,000. In addition, the “total equipment purchase” limit has been raised to $2,890,000 (up from $2.7 million in 2022). The deduction can include both new and used qualified equipment.

In addition, businesses can take advantage of 80% bonus depreciation on both new and used equipment for the entirety of 2023. Remember to keep supply chain issues and delivery times in mind when making your Section 179 purchases for 2023, as equipment must be purchased and put into service by midnight 12/31.

Please see our fully updated 2023 Section 179 Calculator to see how the Section 179 tax deduction can benefit your company in 2023

News Alert: Section 179 and COVID-19

Much of the equipment businesses purchased to conform to COVID-19 restrictions will qualify for the Section 179 tax Deduction. Details on the new Section 179 and COVID-19 page.

Further, eligibility for the Section 179 tax deduction for 2023 is unaffected by any pandemic-related financial assistance a business may have received (e.g., PPP Loans.) In other words, if a company received a PPP loan or any other Pandemic-related assistance, they may still claim their Section 179 Deduction.

2022 Section 179 Tax Information (Last Year)

The Section 179 deduction was $1,080,000 for 2022, with a 100% bonus depreciation in place as well. Tax Year 2022 Section 179 Calculator (Calculator for Last Year)

Answers to the Three Most Common Section 179 Questions

How Much Can I Save on My Taxes This Year?

It depends on how much qualifying equipment and software you purchase and put into use this year. We have a fully updated Section 179 Calculator that can show you your expected tax savings.

What Sort of Equipment Qualifies?

Most tangible business equipment, both new and used, qualifies. Click here for an updated list of qualifying property.

When Do I Have to Do This By?

Section 179 always expires at midnight, December 31st. So to take advantage of Section 179 this year, you must buy (or lease/finance) your equipment, and put it into use, by December 31st of this year.

***Note: In 2023, many businesses are finding Section 179 Qualified Financing to be a very attractive option, especially with several expected Federal Discount Rate increases looming. You can beat future increases by applying today.

More Section 179 Deduction Questions Answered

Section179.Org is your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding the Section 179 tax deduction, and clearly and honestly discuss the various aspects of IRS Tax Code Section 179 in plain language. This will allow you to make the best possible financial decisions for your company.

Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have questions regarding Section 179 such as:

We’ll answer all of these questions, and make certain that you come away with all of the knowledge you need to make smart business decisions in this 2023 tax year regarding equipment and/or software purchasing and Section 179.

Why Use Section 179?

Successful businesses take advantage of legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment – equipment that they use to improve their operations and further increase revenue.

In short, taking advantage of the Section 179 Deduction will help your business add equipment, vehicles, and software, while allowing you to keep more of your tax dollars.

Free Tools that Make Calculating Section 179 Deductions Simple

Section 179 is simple. You buy, finance, or lease qualifying equipment, vehicles, and/or software, and then take a full tax deduction on for this year. To give you an estimate of how much money you can save, here’s a Section 179 Deduction Calculator to make computing Section 179 deductions simple.

If you use the calculator, take special note of the total savings on your tax obligation. Many people find that, if they lease or finance their Section 179 qualified equipment, the tax savings will actually exceed the total of the first year’s payments on the equipment, which makes buying equipment profitable for the current tax year. This is perfectly legal, and a good example of the intended incentive that Section 179 provides to small and medium businesses.