Section 179 Tax Deduction
Deduct qualifying business purchases now — not over time
What Is Section 179?
Section 179 is a federal tax deduction that allows businesses to deduct the full purchase price of qualifying equipment, vehicles, and software in the year the asset is placed into service, rather than depreciating it over several years.
Why Take Advantage of Section 179?
- Immediate reduction in taxable income
- Improved cash flow for your business
- Applies to both new and used qualifying purchases
- Can be combined with bonus depreciation for additional savings
2025 Deduction Limits
Businesses may deduct up to $2,500,000 in qualifying purchases. The deduction begins to phase out once total purchases exceed $4,000,000 and is fully phased out at $6,500,000.
What Qualifies for Section 179?
- Business vehicles (eligibility varies by weight)
- Machinery and heavy equipment
- Computers and technology systems
- Office furniture and equipment
- Off-the-shelf business software
- Certain interior commercial building improvements
Important Deadline
To qualify for the deduction, equipment must be purchased and placed into service by December 31 of the tax year and used more than 50% for business purposes.
Talk to your tax professional to see how Section 179 can benefit your business.
Disclaimer
This information is provided for general educational purposes only and should not be considered tax or legal advice. Consult your tax advisor for guidance specific to your business.