179 TAX DEDUCTION

Section 179 of the IRS tax Code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased of financed during the tax year, up to $1,000,000.

cost of equipment

$

Year One Write-Off

$

Bonus Depreciation starts calculating after $1,000,000 limit is reached

$
$

Assuming a 21% Tax Rate: Actual saving may be higher for certain S-Corp, LLCs and Partnerships

$
$

Note: The deduction limit is $1,000,000 and the limit on purchased equipment is $2,500,000. Once the limit is exceeded, the 179 deduction is reduced dollar-for-dollar, i.e. at $3,500,000 of equipment purchased, the 179 deduction is no longer available.