Section 179 Simplified: Easy Tax Deduction Guide

Updated: February 2025

Want to save money on taxes while upgrading your business? Section 179 lets you deduct the full cost of qualifying equipment and software in the year you buy it – no complicated depreciation schedules, just straightforward tax savings that boost your cash flow.

Section 179 is the government’s way of rewarding businesses that invest in themselves. Instead of waiting years to benefit from depreciation, you get the full tax deduction immediately.

Learn more about The Section 179 Deduction →

Quick Example

Imagine you purchase a $50,000 piece of equipment:

• Without Section 179: Deduct roughly $10,000 per year over 5 years
• With Section 179: Deduct the full $50,000 in one year
• Result: More immediate tax savings—putting extra cash back into your business when you need it most

Section 179 is perfect for businesses that:

• Purchase or finance new or used equipment
• Use the equipment for business purposes
• Need to lower their tax bill quickly to improve cash flow
• Are planning to upgrade or expand their operations

Even if you finance your purchase, you can still claim the full deduction. Explore financing options →

Qualifying purchases include, but are not limited to:

• Business Equipment & Machinery
• Vehicles for Business Use (with specific rules and limits) Learn About Vehicle Deductions →
• Computers and Off-the-Shelf Software
• Office Furniture
• Certain Building Improvements

See our complete list of qualifying equipment →

2025 Deduction Limits

• Maximum Deduction: Up to $1,250,000 in qualifying purchases
• Total Equipment Purchase Limit: $3,130,000
• Note: Once you exceed $3,130,000, the deduction phases out dollar-for-dollar

Plan your purchases accordingly to maximize your benefits!

1. Purchase & Place in Service: Buy or finance qualifying equipment and have it up and running by December 31
2. Estimate Your Savings: Use our Section 179 Calculator to see how much you can save
3. File Your Deduction: Complete IRS Form 4562 when filing your taxes (your tax professional can help)

1. Immediate Tax Relief: Lower your tax bill in the year of purchase
2. Better Cash Flow: Keep more capital on hand for business growth
3. Simple Process: One form, one deduction—no lengthy depreciation schedules
4. Financing-Friendly: Claim the deduction even when financing your purchase

Even if you opt to finance your equipment, Section 179 still applies. Enjoy smaller monthly payments while claiming the full tax deduction upfront. This means your tax savings could outpace your financing costs right from Day 1.

Learn more about Section 179 Qualified Financing →

• Keep Up with Changes: Tax laws evolve—check for updates →
• Voice Your Support: Sign our petition → to help protect these valuable deductions
• Need More Guidance? See Common Questions →

Disclaimer: This guide is for educational purposes only and should not be considered tax advice. Always consult a qualified tax professional for personalized guidance.

Calculate Your Section 179 Savings Now →