Section 179
for Equipment Purchases


Up to $500,000 of Equipment purchases are elligible for a  bonus full tax deduction under Code Section 179.  In addition, 50% Bonus Depreciation on the amount over $500,000 and normal 20% Depreciation is also allowed.  (See illustration below)

Snapshot View

Equipment Cost $600,000
Section 179 Deduction $  500,000
50% Bonus Depreciation $    50,000
20% Normal Depreciation

   $     10,000

Total 1st Year Deduction $  560,000
Tax savings (Assumes 35% tax bracket) $  196,000
Equipment cost (After tax savings) $  404,000

Tax laws are subject to change at any time and their application is highly dependent upon the unique facts and circumstances of any particular taxpayer.  The information in this page is offered as general guidance and is not intended as specific legal, tax or accounting advice.  These calculations are only estimates and everyone's tax situation is different. Always check with your accountant to confirm eligibility for tax benefits.