2023 Section 179 Tax Deductions
We’re here to help you plan for your business’s future regarding capital equipment purchases. Use the Section 179 deduction calculator below to see how much you can save!
If you’re a small business owner, you need to familiarize yourself with the Section 179 deduction. This tax incentive allows you to deduct all or part of the cost of qualified equipment purchased or a capitalized lease purchase transaction prior to December 31, 2023.
This page and calculator are not tax advice. Please consult your tax advisor to determine the tax ramifications of acquiring equipment for your business.
Section 179 Tax Deduction Limit
The 2023 deduction limit on qualifying equipment is $1,160,000. The limit on equipment purchases is $2.5 million. Your business is allowed to depreciate 100 percent of the cost of eligible equipment purchased or financed between September 27, 2017 and 2023. Bonus depreciation also applies to used equipment.
How Can I Get the Section 179 Deduction?
Section 179 is a tax deduction for businesses that have placed new or used equipment into service within the year purchased or financed. This deduction is not automatic and must be elected. To elect to take the deduction, you’ll need to fill out Part 1 of IRS form 4562. Make sure this completed form is attached to your tax return. Not all types of equipment qualify, so be sure to consult your accountant or tax professional before making any purchases.