Calculate Your Tax Savings and Get Answers About Section 179
Financing has Never Sounded so Good—Especially when You See How Many Tax Dollars You Can Save
How Much Money Will a Section 179 Deduction Save You?
Section 179 was created for small and medium sized businesses, like yours. When you purchase qualifying equipment, you can deduct the full cost of the equipment from your taxable income. Here’s an example:
If you purchase: $100,000 Equipment Cost
You may qualify for: $30,000 Tax write-off (based on a 30% tax bracket)
Not only will you get the equipment you need now, but you’ll also reduce your taxable income for big savings now—when you need it most.
Use this calculator to see how much you can save in taxes when you finance new or used equipment for your business during the 2025 tax year.
Calculate Your Potential Savings
Frequently Asked Questions About Section 179
Like many business owners, you probably have questions about how Section 179 deductions work. Here are some of the most commonly asked questions:
Who Qualifies for Section 179?
Businesses that purchase or finance qualifying new or used equipment are eligible to take the Section 179 Deduction.
Most tangible goods used by your business, including machinery, off-the-shelf software, and business-use vehicles (with some restrictions), qualify for the Section 179 Deduction.
Also, the qualifying equipment must be placed in service during the tax year the write-off is being taken.
What is Changing with Section 179 in 2025?
- The deduction limit for Section 179 is $2,500,000
- If you buy (or finance) qualified equipment, you can deduct the Full Purchase Price (up to $2,500,000) from your gross income.
- $4,000,000 is the maximum amount that can be spent on equipment before the Section 179 Deduction is reduced on a dollar for dollar basis.
- New and used capital equipment qualifies as well as off the shelf software.
What’s the Difference Between Section 179 and Bonus Depreciation?
Bonus depreciation for 2025 is 100%.
Bonus Depreciation is useful to businesses spending more than $4,000,000 on new capital equipment.
For equipment purchases over the Section 179 deduction you can deduct 100% of the overage.
While each deduction can help businesses deduct purchasing costs, combining them can offer the greatest possible benefits. IRS rules require that most businesses apply Section 179 first, followed by bonus depreciation.
Have more questions of your own about Section 179? We’ll be happy to answer them.
This information does not constitute advice. Consult with your tax advisor to determine eligibility or visit www.irs.gov for additional information.
