This web page contains a live and functional spreadsheet created with
Expanded Deduction Calculator for 2018
Enter your equipment cost in the highlighted box below to
calculate your potential Section 179 and Bonus deductions for 2018
Machine Cost (Example)
Section 179 Deduction for 2018:
Total First Year Deduction:
Cash Savings on your Equipment Purchase:
(Assuming a 21% tax bracket)
Lowered Cost of Equipment
This table assumes standard depreciation over five years. The above table is for illustration purposes only. Everyone's tax situation is different, please consult your tax advisor.
Section 179 American Recovery and Reinvestment Act
Section 179 will be at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment will have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.
Also, 50% Bonus Depreciation will be extended through 2019 but is only available on New equipment purchases. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.