Section 179 Deduction Calculator

Use this calculator to determine your potential Section 179 tax deduction for business equipment purchases. This tool is designed for business owners who want to maximize their tax savings on equipment expenses.

Data Source and Methodology

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti dalla IRS Section 179 Deduction guidelines. Learn more.

The Formula Explained

The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)

Glossary of Variables

  • Total Cost of Equipment: The purchase price of qualifying equipment.
  • Section 179 Deduction Limit: The maximum amount you can deduct under Section 179.

Frequently Asked Questions (FAQ)

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the cost of qualifying equipment purchased or financed during the tax year.

How does Section 179 benefit my business?

It allows you to deduct the full purchase price of qualifying equipment from your gross income, providing significant tax relief.

What types of equipment qualify for Section 179?

Most tangible goods including machinery, computers, software, office furniture, vehicles, and other business equipment qualify.

What is the spending cap on equipment purchases?

For 2023, the spending cap on equipment purchases is $2,620,000.

Can I apply Section 179 for used equipment?

Yes, both new and used equipment qualify for the Section 179 deduction, provided it is new to you.


Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
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Formula (extracted text)
The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)
Variables and units
  • T = property tax (annual or monthly depending on input) (currency)
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn
``` , ', svg: { fontCache: 'global' } };

Section 179 Deduction Calculator

Use this calculator to determine your potential Section 179 tax deduction for business equipment purchases. This tool is designed for business owners who want to maximize their tax savings on equipment expenses.

Data Source and Methodology

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti dalla IRS Section 179 Deduction guidelines. Learn more.

The Formula Explained

The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)

Glossary of Variables

  • Total Cost of Equipment: The purchase price of qualifying equipment.
  • Section 179 Deduction Limit: The maximum amount you can deduct under Section 179.

Frequently Asked Questions (FAQ)

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the cost of qualifying equipment purchased or financed during the tax year.

How does Section 179 benefit my business?

It allows you to deduct the full purchase price of qualifying equipment from your gross income, providing significant tax relief.

What types of equipment qualify for Section 179?

Most tangible goods including machinery, computers, software, office furniture, vehicles, and other business equipment qualify.

What is the spending cap on equipment purchases?

For 2023, the spending cap on equipment purchases is $2,620,000.

Can I apply Section 179 for used equipment?

Yes, both new and used equipment qualify for the Section 179 deduction, provided it is new to you.


Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
','
Formula (extracted text)
The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)
Variables and units
  • T = property tax (annual or monthly depending on input) (currency)
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn
``` ]], displayMath: [['\\[','\\]']] }, svg: { fontCache: 'global' } };, svg: { fontCache: 'global' } };

Section 179 Deduction Calculator

Use this calculator to determine your potential Section 179 tax deduction for business equipment purchases. This tool is designed for business owners who want to maximize their tax savings on equipment expenses.

Data Source and Methodology

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti dalla IRS Section 179 Deduction guidelines. Learn more.

The Formula Explained

The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)

Glossary of Variables

  • Total Cost of Equipment: The purchase price of qualifying equipment.
  • Section 179 Deduction Limit: The maximum amount you can deduct under Section 179.

Frequently Asked Questions (FAQ)

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the cost of qualifying equipment purchased or financed during the tax year.

How does Section 179 benefit my business?

It allows you to deduct the full purchase price of qualifying equipment from your gross income, providing significant tax relief.

What types of equipment qualify for Section 179?

Most tangible goods including machinery, computers, software, office furniture, vehicles, and other business equipment qualify.

What is the spending cap on equipment purchases?

For 2023, the spending cap on equipment purchases is $2,620,000.

Can I apply Section 179 for used equipment?

Yes, both new and used equipment qualify for the Section 179 deduction, provided it is new to you.


Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
','
Formula (extracted text)
The deductible amount is calculated using the formula: Deductible = min(Cost of Equipment, Deduction Limit)
Variables and units
  • T = property tax (annual or monthly depending on input) (currency)
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn
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