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 gives businesses the opportunity 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 break encourages small businesses to invest in themselves and to purchase equipment sooner rather than later. There are some limits, however, to the amount that can be written off. ($500,000 in 2014) The section 179 tax deduction decrease dollar for dollar on purchases over $2 million. After the Section 179 tax deductions are exhausted, bonus depreciation of 50% can be taken on the remaining amount of equipment placed into service. Use this Section 179 Tax Deduction Calculator to help determine your Section 179 write off amount and the tax savings it might generate for you.

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.