Section 179
Expanded Deduction Calculator for 2021
Enter your equipment cost in the highlighted box below to
calculate your potential Section 179 and Bonus Deductions for 2021
Machine Cost (Example)
Section 179 Deduction for 2021:
Total First Year Deduction:
Cash Savings on your Equipment Purchase: (Assuming a 21% tax bracket)
Lowered Cost of Equipment
         
Note: 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

$1,050,000 is the deduction limit that is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2021, and the equipment must be financed/purchased and put into service by the end of 12/31/2021.

$2,620,000 is the spending cap and is the maximum amount that can be spent on equipment before the IRS Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.


100% Bonus Depreciation is generally taken after the IRS Section 179 Spending Cap is reached.