Section 179 Tax Deductions
Section 179 at a Glance for 2019
This deduction is good on new and used equipment. To take the deduction for tax year 2019, the equipment must be financed or purchased and put into service between January 1, 2019 and the end of the day on December 31, 2019.
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3.5 million on equipment won’t get the deduction.)
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
|First Year Write Off|
$1,000,000 = 2019 max
|100% Bonus First Year Depreciation|
updated to 100% via ‘Tax Cuts & Job Act
|Normal First Year Deduction|
20% in each of 5 years on remaining amount
Deduction x Tax Rate (35%)
|Purchase Cost After Tax||$747,500|
Information provided by section179.org
Calculate your deductions by visiting the Section 179 Deduction Calculator