SECTION 179 CALCULATOR FOR 2024
Calculate your potential Section 179 tax savings for the current tax year.
2024 Section 179 calculator
Find out how much you might be able to deduct.
The results provided by Regents Capital’s Section 179 tax deduction calculator are for illustrative purposes only. Regents Capital and its employees are not tax advisors, and this Section 179 calculator is not intended to offer any tax advice or recommendations. You should consult a tax professional or accountant about your business’s situation.
UNDERSTANDING SECTION 179
Section 179 is a game-changing tax provision that you should know about. This powerful tax deduction allows you to expense the cost of qualifying equipment, also referred to as property or assets, in the year it is purchased, financed, or leased rather than depreciating it over several years. Taking advantage of Section 179 can reduce your business’s taxable income.
Various types of new and used business equipment, vehicles, machinery, technology, and software qualify for Section 179. Still, discussing your equipment needs with a tax professional or accountant before procuring it is a good idea, as they can confirm if the deduction will apply. To claim the Section 179 deduction on your company’s tax return, you must include a completed copy of IRS Form 4562 — Depreciation and Amortization (Including Information on Listed Property) in your business tax return.
BREAKING DOWN THE SECTION 179 LIMITS FOR 2024
Understanding the Section 179 deduction limits for 2024 is crucial for business owners like yourself looking to maximize their tax benefits. The maximum deduction amount has been set at $1,220,000, allowing you to write off a sizeable portion of your equipment purchases. However, it’s important to note the spending cap of $3,050,000, beyond which the deduction begins to phase out dollar-for-dollar.
The 2024 Section 179 deduction limit of $1,220,000 applies to one or multiple pieces of equipment. Careful planning is essential when investing in new or used equipment that qualifies for deduction. Specifically, you can only elect a deduction amount that is within the 2024 limit of $1,220,000, and your deduction amount cannot be more than your business’s qualifying taxable net income. If your deduction exceeds your business’s taxable income, ask your tax professional or accountant if you can carry the remaining amount to future years.
SECTION 179 AND BONUS DEPRECIATION
With Section 179, you can deduct a certain dollar amount from your qualifying equipment acquisitions (purchased, financed, or leased) in 2024. Bonus depreciation is a complementary tax incentive that enables you to deduct a certain percentage of your qualifying equipment purchase upfront. By leveraging Section 179 and bonus depreciation together, you can significantly increase your first-year write-off and accelerate depreciation on qualifying equipment.
The bonus depreciation rules allow for an additional tax savings opportunity beyond Section 179, enabling you to deduct a considerable portion of your equipment investments upfront. Bonus depreciation is set at 60% in 2024 and will ramp down in future years. It will be 40% in 2025, 20% in 2026, and 0% in 2027, so don’t wait to maximize your tax savings. Apply for funding to finance or lease equipment from Regents Capital today!
