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Section 179 Deduction Calculator

Estimate Section 179 deduction limits and first-year write-off potential for business equipment.

Equipment & Business Details

Equipment cost

Cost of the equipment you want to deduct

Total equipment purchases this year

All Section 179 qualifying purchases in 2026

Taxable business income

Net income before Section 179 deduction

Marginal tax rate

Federal bracket the deduction offsets

What Is the Section 179 Deduction?

Section 179 of the Internal Revenue Code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. Instead of depreciating an asset over several years, you can write off the entire cost in the year it is placed in service.

2026 Section 179 Limits

Maximum deduction: $2,560,000
Phase-out threshold: $4,090,000 in total equipment purchases
The deduction reduces dollar-for-dollar once total purchases exceed the threshold, and is fully eliminated at $6,650,000.

Phase-Out Rules

If your total qualifying purchases for the year exceed $4,090,000, the $2,560,000 limit is reduced by the excess amount. For example, if you purchase $4,190,000 of equipment, your Section 179 limit drops to $2,460,000 ($2,560,000 minus the $100,000 excess).

Taxable Income Limitation

The Section 179 deduction cannot exceed your taxable business income for the year. In other words, you cannot use Section 179 to create or increase a net operating loss. Any amount that exceeds your income can generally be carried forward to future tax years.

What Qualifies for Section 179?

Machinery and equipment
Office furniture and fixtures
Computers and off-the-shelf software
Business vehicles (with limitations)
Certain improvements to nonresidential real property

Section 179 vs. Bonus Depreciation

Both Section 179 and bonus depreciation let you accelerate deductions, but they work differently. Section 179 has a dollar cap and an income limitation, while bonus depreciation (when available at 100%) has no dollar limit and can create a loss. Many businesses use both strategies together to maximize first-year write-offs.

This calculator provides estimates for planning purposes only. The 2026 Section 179 limits shown are based on current IRS Publication 946 guidance. Tax rules are complex and depend on your specific situation. Consult a qualified tax professional before making purchasing decisions based on these estimates.

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How to Use the Section 179 Deduction Calculator

1
Enter your values
Open the Section 179 Deduction Calculator and fill in the required input fields with your numbers or selections.
2
Review the calculation
The tool automatically computes the result as you type. Double-check your inputs to ensure accuracy.
3
Interpret your results
Review the calculated output along with any breakdowns, charts, or explanations provided to understand what the numbers mean for your situation.

Sources & Verification

Tax rates verified against official government sources for current published tax years

IRS HM Revenue & Customs (HMRC)Canada Revenue Agency (CRA)Australian Taxation Office (ATO)

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What is the Section 179 Deduction Calculator?

The Section 179 Deduction Calculator is a free browser-based tool on ConvertCrunch. Estimate Section 179 deduction limits and first-year write-off potential for business equipment. It requires no downloads, installations, or account signups. Simply enter your values and get instant, accurate results. The tool is designed for quick calculations and informed decision-making, whether you are a professional, student, or everyday user looking for reliable answers.

How do I use the Section 179 Deduction Calculator?

Using the Section 179 Deduction Calculator is straightforward. Enter your values into the input fields provided on the page, then calculate or adjust parameters to explore scenarios. Most processing happens locally in your browser. If a feature uses a third-party service, the tool identifies that connection and the privacy policy explains it. Most users get the answers they need in under a minute.

Is the Section 179 Deduction Calculator free to use?

Yes, the Section 179 Deduction Calculator is completely free to use with no account signup, email requirement, or premium tier. Most calculations run locally in your browser. Features that depend on live data or a third-party service require a network connection and are identified in the tool. You can use it as many times as you need for personal, educational, or professional purposes.

How accurate is the Section 179 Deduction Calculator?

The Section 179 Deduction Calculator uses current tax rates, brackets, and thresholds published by the relevant tax authority. It is designed for estimation and planning purposes and produces results consistent with official guidelines. However, individual tax situations can be complex, and this tool does not replace professional tax advice. Always verify results with a qualified tax professional or the applicable government agency before making financial decisions.

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What Is the Section 179 Deduction?

2026 Section 179 Limits

Maximum deduction: $2,560,000
Phase-out threshold: $4,090,000 in total equipment purchases
The deduction reduces dollar-for-dollar once total purchases exceed the threshold, and is fully eliminated at $6,650,000.

Phase-Out Rules

Taxable Income Limitation

What Qualifies for Section 179?

Machinery and equipment
Office furniture and fixtures
Computers and off-the-shelf software
Business vehicles (with limitations)
Certain improvements to nonresidential real property