Deductions

Buy equipment for the business? Section 179 might let you deduct it now.

Enter the purchase price and your taxable income. See how much you can expense immediately under Section 179 and what that saves at your marginal rate.

2026 IRS numbers
Stays on your device
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Tax and payroll data last updated: July 2026. Sources & methodology

Your numbers

$

Computers, cameras, tools, machinery — new or used business property.

$

Used to estimate tax savings at your marginal rate.

2026 Section 179 deduction
$15,000

About $3,300 back at your marginal rate.

Section 179 limit
$1,280,000
Phase-out starts at
$3,200,000
Marginal rate used
22%
Remaining to depreciate
$0

Section 179 requires business use and profit to absorb the deduction. Amounts above the limit can often be depreciated over time. Vehicle and listed-property rules not modeled.

How this is calculated

Section 179 lets qualifying businesses deduct equipment purchases in the year bought instead of depreciating over years. For 2026, the cap is $1,280,000 with a phase-out starting at $3,200,000 in total qualifying purchases.

You need business profit to use the deduction — it cannot create a net loss. Amounts above the limit can often be depreciated under bonus or MACRS rules (not modeled here).

Formula
Deduction = min(purchase price, §179 limit) − phase-out reduction

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Common questions

Machinery, computers, office furniture, vehicles over 6,000 lbs, and other tangible business property — not land or buildings. Must be used more than 50% for business.
Yes, if it's ordinary for your business and predominantly business use. Keep the receipt and note the business purpose.
The excess can usually be depreciated over time. This calculator shows what's left after Section 179 for planning — a CPA picks the best mix.
No — it's one piece of the puzzle. Bonus depreciation rules change by year; Section 179 gives you a dollar cap you control directly.