Section 179 Tax Deduction Calculator

How Much Can You Write Off? Use Our Section 179 Tax Deduction Calculator To Find Out.

Tax Deduction for Equipment Purchases

Section 179 of the IRS tax code allows businesses to deduct the FULL purchase price of qualifying new and used equipment and software placed into service during the tax year they were purchased or financed. This tax incentive motivates small businesses to invest sooner rather than later. However, there are limits to the deduction. ($500,000 in 2014) The Section 179 tax deduction phases out dollar for dollar on purchases over $2 million. Once Section 179 deductions are maximized, businesses can still apply bonus depreciation of 50% on remaining eligible equipment. Use this Section 179 Tax Deduction Calculator to estimate your write-off and savings. And if your business also manages vehicles, don’t forget to check our Mileage Calculator for Lease to simplify lease and cost calculations.

After using this tool, the best way to find out if you qualify for a 179 deduction is by contacting your business accountant, as he or she is the best resource for everything related to business tax write-offs.