Section 179 Calculator
Calculate your maximum Section 179 deduction for business equipment purchases, including phase-out reductions, income limitations, and combined first-year write-off with bonus depreciation.
Tax Disclaimer
This calculator provides estimates based on general tax rules and may not reflect your specific situation. Tax laws vary by jurisdiction and change frequently. Consult a qualified tax professional or CPA for advice tailored to your circumstances.
Inputs
Results
Section 179 Deduction
$200,000.00
≈ 13 used cars
Total First-Year Write-Off
$200,000.00
≈ 13 used cars
How to Use This Calculator
- Enter Equipment Cost for the qualifying business asset (must be tangible property used >50% for business).
- Set Total Assets Placed in Service — the Section 179 limit phases out dollar-for-dollar above $3.05M (2024).
- Enter Business Taxable Income — Section 179 cannot create a loss; the deduction is capped at business income.
- Set Marginal Tax Rate % for tax savings calculation.
- Select Tax Year for the applicable bonus depreciation rate on remaining basis.
- Review Year 1 Deduction and Tax Savings — Section 179 + bonus depreciation often allows full expensing in year 1.
How the result changes with Equipment Cost ($)
| Equipment Cost ($) | Section 179 Deduction | Total First-Year Write-Off |
|---|---|---|
| $1,000,000.00 | $300,000.00 | $776,000.00 |
| $3,500,000.00 | $300,000.00 | $2,476,000.00 |
| $6,500,000.00 | $0.00 | $4,420,000.00 |
| $9,000,000.00 | $0.00 | $6,120,000.00 |
What each input means
- Equipment Cost ($)
- Cost of the qualifying equipment or property you want to expense under Section 179.
- Total Assets Placed in Service ($)
- Total cost of all business assets placed in service this year. Phase-out begins at $3,050,000.
- Business Taxable Income ($)
- Active trade or business taxable income. Section 179 deduction cannot exceed this amount.
- Marginal Tax Rate (%)
- Your combined federal and state marginal income tax rate.
- Tax Year
- Determines the bonus depreciation rate applied to the remaining basis after Section 179.
What each result means
- Section 179 Deduction
- Your Section 179 deduction after phase-out and income limitations.
- Total First-Year Write-Off
- Combined Section 179 + bonus depreciation + MACRS first-year deduction.
- Tax Savings
- Estimated tax savings from the total first-year write-off.
- Net After-Tax Equipment Cost
- Effective cost of equipment after tax savings from depreciation.
- Bonus Depreciation
- Additional first-year depreciation on the basis remaining after Section 179.
- Section 179 Carryforward
- Deduction amount exceeding business income, carried forward to future years.
- Remaining Depreciable Basis
- Basis left to depreciate under MACRS in future years.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersEquipment Cost ($) = 200000, Total Assets Placed in Service ($) = 200000, Business Taxable Income ($) = 300000, Marginal Tax Rate (%) = 24 = 5 input(s) provided
- Calculate Section 179 DeductionSection 179 Deduction = min(equipmentCost, availableLimit)200000 = $200,000
- Calculate Total First-Year Write-OffTotal First-Year Write-Off = section179Deduction + bonusDepreciation + macrsFirstYear200000 = $200,000
- Calculate Tax SavingsTax Savings = totalFirstYearWriteOff * (marginalRate / 100)48000 = $48,000
- Calculate Net After-Tax Equipment CostNet After-Tax Equipment Cost = equipmentCost - taxSavings152000 = $152,000
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
Related Calculators
The questions that sit next to this one — chosen by subject, including calculators filed under a different category.
MACRS Depreciation Calculator
Calculate MACRS depreciation schedules for business assets.
AccountingStraight-Line Depreciation Calculator
Calculate annual depreciation evenly over an asset's useful life.
Photography BusinessPhotography Tax Deductions Calculator
Estimate common tax deductions for photography businesses including equipment, mileage, home office, software, and marketing.
Tax PlanningBonus Depreciation Calculator
Calculate first-year bonus depreciation deductions under the TCJA phase-down schedule, combined with MACRS recovery for eligible asset purchases.
Tax PlanningQBI Deduction Calculator
Calculate your Section 199A Qualified Business Income deduction with W-2 wage limits, UBIA property tests, and SSTB phase-out rules for 2024.
More in Tax & Accounting.