Apply for financingTax calculator
This Section 179 calculator estimates the first-year write-off on equipment purchases and bonus depreciation, then an illustrated tax savings figure at the rate you enter. It is not tax advice.
Estimated first-year write-off (2026)
$85,000
Illustrative estimate for 2026 federal rules — not tax advice. Eligibility, limits and your actual benefit depend on your business and should be confirmed with a tax professional.
How it works
For 2026, the Section 179 deduction caps at $2,560,000 and begins phasing out once qualifying property placed in service passes $4,090,000. Bonus depreciation remains at 100% for qualified property, so most equipment purchases under the cap can be written off entirely in year one. The deduction cannot exceed your business taxable income — excess carries forward — which is why the income field exists even though most buyers can skip it.
The limit
The deduction covers qualifying equipment dollar-for-dollar up to the cap. Past the phase-out threshold, each additional dollar of equipment placed in service reduces the cap by a dollar until it reaches zero.
Bonus
Whatever is not deducted under Section 179 — either by choice or because the cap was reached — is generally eligible for 100% bonus depreciation on qualified property acquired after January 19, 2025.
Financing
Section 179 applies to financed equipment, not just cash purchases — you can often write off the full price in year one while paying it off over the loan term. That timing gap is why buyers check the deduction before applying.
Caveats
The deduction needs qualifying business-use property placed in service by year end, and SUVs carry a separate $32,000 cap. State conformity varies. Confirm your specific situation with a tax professional.
Important questions
The maximum deduction is $2,560,000 for tax years beginning in 2026. It phases out dollar-for-dollar once total qualifying property placed in service exceeds $4,090,000.
Generally yes — qualifying financed equipment can be written off in the year it is placed in service even though you pay for it over time. Your financing agreement and tax advisor determine the exact treatment.
Section 179 is an election up to an annual dollar limit and cannot create a loss beyond business income. Bonus depreciation is automatic first-year write-off — currently 100% — on qualified property with no cap but no election to partial amounts. Many businesses use 179 first, then bonus on the remainder.
Yes, qualifying used equipment is generally eligible for both Section 179 and bonus depreciation as long as it is new to your business and meets the other requirements.
No. It produces an illustrative estimate from published limits and your inputs. Actual deductions depend on your entity, income, asset eligibility and state rules — confirm with a qualified tax professional.
Financing built into the sale