Section 179 lets a business deduct equipment cost upfront. See the tax it saves.
A Section 179 calculator estimates the first-year tax savings from deducting the full cost of qualifying business equipment under Section 179, rather than depreciating it over years.
Section 179 lets many businesses deduct the entire cost of qualifying equipment, machines, vehicles, computers, software, in the year it's placed in service, up to an annual limit, instead of spreading the deduction over the asset's life. The tax savings equal the deduction times your business tax rate, improving cash flow when you invest.
There's an annual deduction cap and a phase-out once total equipment purchases exceed a threshold, and the equipment must be used more than half the time for business. Bonus depreciation may apply on top for larger purchases. Rules change and can be complex, this is an estimate to gauge the benefit; consult a tax professional before relying on it.
It lets businesses deduct the full cost of qualifying equipment in the year it's placed in service, up to an annual limit, instead of depreciating it over years.
The deduction times your business tax rate. Deducting $50,000 at a 24% rate saves about $12,000 in the first year.
Most tangible business equipment, machinery, vehicles, computers, and off-the-shelf software, used more than 50% for business. Limits and phase-outs apply.
See the exact formula and a worked example on our methodology page.