A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
26 U.S. Code § 179 - Election to expense certain depreciable ...
What is the Section 179 deduction? The Section 179 deduction is a tax deduction for the purchase of certain business assets. The deduction can help lower a business’s taxable income in the year...
179 (a) Treatment as Expenses A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
What Is the Section 179 Deduction? The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment and property in the year it’s placed in service, rather than depreciating it over several years.
Section 179 allows a taxpayer to expense the cost of qualifying property in the year it is placed in service, rather than recovering that cost through depreciation over time. For tax years beginning in 2025, the maximum Section 179 deduction is $2,500,000.
100% Bonus Depreciation is back in a big way - it's been permanently restored for qualified property acquired on or after 1/20/25 under the 2025 “OBBBA”. Learn how Section 179 and Bonus Depreciation work together in our latest guide.
A section 179 deduction for the current year or a sec-tion 179 carryover from a prior year. See chapter 2 for information on the section 179 deduction. Depreciation for property placed in service during the current year. Depreciation on any vehicle or other listed property, regardless of when it was placed in service.