USUSASection 179 Equipment DeductionBusiness

US Section 179 Small Business Equipment Tax Deduction Calculator

Calculate your first-year business tax deduction and net after-tax equipment cost under IRS Section 179 (allowing up to $1,220,000 in full expensing for qualifying machinery, vehicles, and software).

Calculator Inputs

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$
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25 %
15 %40 %
Calculated ResultSection 179 Equipment Deduction

First-Year Cash Tax Savings from Deduction

$37,500

Effective Net Cost of Equipment After Tax Benefit

$112,500

Total Section 179 Immediate 100% Write-Off

$150,000

Detailed Calculation Breakdown

Equipment Purchase
$150,000
Tax Cash Savings
$37,500
Net Effective Cost
$112,500

Calculation Methodology

Section 179 Deduction = min(Equipment Cost, $1,220,000). First-Year Tax Savings = Section 179 Deduction * (Corporate/Income Tax Rate% / 100). Net Equipment Cost = Equipment Cost - Tax Savings.

Important Legal & Educational Disclaimer

Section 179 applies to qualifying tangible business property placed in service during the tax year. Phase-out begins at $3,050,000 total equipment purchases.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Eligible businesses can immediately deduct up to $1,220,000 of qualifying equipment purchases in the first year, phasing out above $3,050,000 in total purchases.
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