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IRS Section 179 Equipment Tax Deduction Calculator

Calculate IRS Section 179 immediate expense tax deductions, phase-out thresholds, heavy SUV/truck deductions (>6,000 lbs GVWR), and net after-tax equipment cost.

Calculation Results

Total First-Year Section 179 Deduction: $185,000 No phase-out limitation triggered
Direct Cash Tax Savings: $64,750
Net Effective Cost of Equipment: $120,250
Remaining Depreciable Basis: $0

About This Calculator

Calculate IRS Section 179 immediate expense tax deductions, phase-out thresholds, heavy SUV/truck deductions (>6,000 lbs GVWR), and net after-tax equipment cost.

Frequently Asked Questions

What is the IRS Section 179 deduction limit?

For the 2024 tax year, the IRS Section 179 deduction limit is $1,220,000 with a spending phase-out cap of $3,050,000. For 2025, inflation adjustments increase the cap to $1,250,000.

What qualify as Section 179 eligible assets?

Eligible property includes machinery, heavy equipment, office furniture, computers, off-the-shelf software, business vehicles over 6,000 lbs GVWR, agricultural structures, and certain building improvements (roofs, HVAC, fire alarms).

What is the 'Hummer Loophole' for heavy vehicles?

Vehicles with a Gross Vehicle Weight Rating (GVWR) exceeding 6,000 lbs (such as Ford F-150, Chevrolet Tahoe, Tesla Model X) qualify for up to $30,500 in Section 179 deduction, with the remaining basis eligible for bonus depreciation if used >50% for business.

Can Section 179 create a net operating loss (NOL)?

No. Section 179 deductions cannot exceed your net taxable business income for the year. However, any disallowed deduction can be carried forward indefinitely to future profitable tax years.