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    Section 179 Calculator

    Estimate first-year Section 179 expense, bonus depreciation, and federal tax savings on a business asset purchase.

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    $
    $
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    Section 179 expense 50,000.00
    Bonus depreciation (40%)$0.00
    Total first-year deduction 50,000.00
    Estimated federal tax savings$36,000.00

    How it works

    Section 179 lets you immediately expense qualifying business asset purchases up to .25M (2025), instead of depreciating over years. Above $3.13M in total qualifying purchases, the deduction phases out dollar-for-dollar. Bonus depreciation (40% in 2025, phasing down) covers anything Section 179 can't.

    You can only deduct up to your business taxable income, Section 179 can't create a loss. Vehicles over 6,000 lbs GVWR have their own rules.

    Examples

    50k equipment purchase

    Full amount deducted year 1; at 24% bracket, ~$36k federal tax savings.

    $3.5M in purchases

    Section 179 phases out entirely; you'd rely on bonus depreciation and MACRS.

    Frequently asked questions

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